JCI Opens in Green on Friday Morning
6 March 2015 15:04 WIB
TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange (IDX) went up by 16.20 points at the start of Friday's trading session, boosted by positive internal and external sentiments.
The JCI jumped by 16.20 points or 0.30 percent to open at 5,467.15 points, while the Top 45 (LQ45) Index rose by 4.09 points or 0.43 percent to begin trading at 950.67 points.
"Regional sentiments are among of the driving forces behind the JCI's uptrend on Friday," said the head of research at Valbury Asia Securities, Alfiansyah, in Jakarta on Friday.
Alfiansyah explained that European bourses were experiencing an uptrend as investors saw the results of the European Central Bank's (ECB) meeting in a positive light. He added that European investors were anticipating the release of the details of its one trillion Euro obligation buyback program.
Domestically, Alfiansyah also said that Bank Indonesia's statement that the rupiah's depreciation would not have a negative impact on Indonesia's 2015 State Budget (APBN) as it was helped by the fact that Indonesia was spending much less on fuel subsidies.
As a result of the cuts, Indonesia now spends around Rp81 trillion on fuel subsidies—a 70.6 percent decline from its previous fuel subsidy spending totalling Rp276 trillion.
Alfiansyah said the rupiah's depreciation was driven more by external factors rather than Indonesia's economic fundamentals, as the JCI had continued to rally despite the continued depreciation of the rupiah against the greenback.
An analyst for Asjaya Indosurya Securities, William Suryawijaya, added that the JCI had managed to stay in the green, and thus the possibilities of a further uptrend remained open, as the Index was being boosted by positive expectations on Indonesia's foreign exchange reserves position in February 2015 and the fact that Indonesia managed to post yet another trade surplus.
"Such positive expectations can help the Index remain on track for a further uptrend," said Suryawijaya.
Meanwhile, across Asia, the Hang Seng Index was up by 16.82 points or 0.07 percent to open at 24,209.86 points, the Nikkei rose by 159.92 points or 0.85 percent to begin trading at 18,911.76 points, while the Straits Times Index also climbed by 17.21 points or 0.53 percent to begin trading at 3,412.10 points.
ANTARA
