Indonesian capital market gains greater confidence: Analyst

09 , 2016 | Source: Antara News

Foreign investors have greater confidence in the Indonesian stock market after better than expected data of the countrys economy in the second quarter of this year, analysts said.

 

"Foreign funds have continued to flow into the domestic market indicating greater confidence in our economy," market analyst William Surya Wijaya from Asjaya Indosurya Securities said here on Monday.

The countrys economy grew 5.18 percent in the second quarter of this year overshooting the targets set by Bank Indonesia and a number of analysts.

The Q2 growth surged from 4.92 percent in the Q1 and brought the countrys economic growth rate to 5.01 percent in first half of the year.

Meanwhile, the Indonesian Stock Exchange (BEI) recorded Rp33.19 trillion in total foreign net buy from early this year until Monday.

William said the economic data is expected to keep the rising trend of the BEI index (IHSG).

Based on the BEI data, the IHSG rose 18.85 percent year to date or 865.97 points to 5,458.98 points so far this year.

The IHSG year to date growth was higher than indices recorded by most stock markets in the world .

The Philippines recorded a growth of only 14.98 percent, Britains market 8.99 percent, India 7.91 percent, Australia 5.26 percent, the U.S.Dow Jones 5.34 percent, South Koreas KOSPI 3.56 percent and Hong Kongs Hang Seng 2.65 percent.

IHSG growth was lower only than that of Thai index of 19.74 percent.

The rising trend of IHSG helped push up the market capitalization in the domestic market to the level of Rp5,879.82 trillion by 8 August 2016.

The BEIs President Director Tito Sulistio has said he was optimistic the market capitalization would cross the level of Rp6,000 trillion in 2016 with growing number of companies launching Initial Public Offering (IPO).

"Currently seven companies are in the process of launching IPO. If the process run smoothly the market capitalization of our capital market would exceed Rp6,000 trillion," he said.

Market capitalization is the value of securities listed on the stock market.

The Jakarta composite index closed 0.71 percent higher on Monday driven by positive sentiment of the countrys economic growth in the second quarter of this year.

On Monday, the IHSG rose 38.73 points closing at 5,458.97 with index of 45 most liquid stocks up 0.92 percent to 940.76.

The data of the countrys economic growth still was still main sentiment in trade in the first trading day of this week, analysts said.

 

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Strong consolidation needed to face global economic turbulence Reporter: Agus Salim 3 hours ago President Joko Widodo (Jokowi) addressing at a ceremony commemorating the 50th anniversary of the Indonesian Chamber of Commerce and Industry (Kadin) on Monday night. (Agus Salim) Jakarta (ANTARA News) - President Joko Widodo (Jokowi) reminded the country`s fiscal and monetary authorities and the business of the need for strong coordination and consolidation to face the global economic uncertainties. "Uncertainties in the global condition, trade war between the United States and China, increase in interest rate, crisis in Argentina and Turkey, would necessitate strong consolidation and coordination between the monetary and fiscal authorities and the business sector," Jokowi said addressing a ceremony commemorating the 50th anniversary of the Indonesian Chamber of Commerce and Industry (Kadin) here on Monday night. He said good coordination and consolidation would make it easier to develop the public and market confidence. "It is the same as in developing a corporation. Trust brand is vital. The state needs that. Building up trust and market confidence that the international communities, domestic market believe that we are working seriously to settle state problems," he said. He said Indonesia is a big country with a population of 263 million, the fourth largest in the world, having 17,000 islands and made up of 34 provinces. "It is not easy to manage such big country . Each area has own cases, and requirement different from each other," he added. He said developing Indonesia concerns not only economic and political aspects. "If we are concerned only with economic and political gains we need only to focus on development of Java, which is home to 60 percent of the country`s population, but we think of a nation. We are concerned not only with expanding business empire leaving Papua, North Maluku, NTT and other eastern Indonesian regions to suffer in backwardness," he said. Currently imbalance is still wide in infrastructure between the country`s western, central and eastern regions, he said, adding Indonesia is seeking to catch up with other countries. He cited three years earlier, Indonesia had only 231 water reservoirs and dams as against 6,000 dams in the United States and 110,000 dams in China. "This is fact that has to be presented and we have to do something about it," he said. He also spoke about progress made in the construction of toll roads saying after the Jagorawi toll road was operational until early 2015, Indonesia had only 780 km of toll road as against China`s toll roads totaling 280,000 km. "We need to know the condition we are in before we start working hard to make up for the gap especially in eastern Indonesia," he said. Reporting by Agus Salim Editing by Albert Saragih Editor: Bustanuddin COPYRIGHT © ANTARA 2018 AddThis Sharing Buttons Share to FacebookShare to TwitterShare to Google+Share to WhatsAppShare to LINEShare to PinterestShare to GmailShare to EmailShare to More Prev News Indonesia calls for reconciliation and justice for peace Next News Puan attends UN meeting on world peace Comments
President Joko Widodo (Jokowi) reminded the country`s fiscal and monetary authorities and the business of the need for strong coordination and consolidation to face the global economic uncertainties.
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