“Investors consider Indonesia`s stock market to be more attractive than the global bourses so that the Jakarta joint share price index continues to go up which indicates continued stock buying activity.”
Jakarta – Worries about worsening global economic conditions were having a negative impacts on the New York and regional stock markets but the price index of the Indonesian Stock Exchange (BEI) strengthened 0.56 percent, stock market observer Ifan Kurniawan said here on Wednesday.
Ifan Kurniawan who is an analyst of PT First Asia Capital said the buying actions by market players were relatively small as they during the past few days they had been consolidating themselves.
The Indonesian Stock Exchange (BEI) index had earlier dropped to nearly 3,600 points as market players worried about the unstable global economy, he said.
The relatively-small increase of the index was because the agents were still confident with the fundamental factor of the Indonesian economy which is ameliorating and the inflation rate was under five percent.
“We are optimistic that the inflation rate in August reaches 0.93 percent making Bank Indonesia (BI, the central bank) maintain the referred interest rate (BI rate) at 6.75 percent,” he said.
According to him, Bank of Indoensia (BI)I rate until the end of the year was expected to remain on the position of 6.7 percent to make the national economy keep growing.
Bank of Indonesia (BI) will maintain the referred interest rate till the end of this year at the level of 6.75 percent, he said.
The US economy is also growing better after the US service index in August reached 53.3 from earlier 52.7 over the expectation from the analyst who predicted it only reached 51.
So, Europe is a negative market that gave pressure to the BEI index so as to drop 300 points, although it slightly grew, he said.
Ifan said the Indonesian economy till the end of this year would still grow in accordance with the market expectation which reached 6.7 percent.
“We are optimistic that the Indonesian economy still grows as it is supported by the consumption sector, foreign investment and exports,” he added.
Moreover, he said, the Indonesian exports to Europe and the US accounted only for 30 percent while the rest 70 percent to the Asian market.
Source: ANTARA News – September 7 2011
Photo: ANTARA News
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