Investors Enthusiasm Hoists Index
2 April 2014 19:12 WIB
TEMPO.CO, Jakarta - Market participants enthusiastically bought stocks following yesterday's positive data release, pushing the index up. The Jakarta Composite Index (JCI) was also affected by the uptrend in regional markets. On yesterday's trade, the JCI rose 105.66 points (2.22 percent) to 4,873.93.
The Central Statistics Agency (BPS) noted the March inflation rate at 0.08 percent. With the diminution of imports value, the trade balance in February posted a surplus of US$785.3 million. The improvement of the two economic indicators increasingly built optimism over Indonesia's future economic performances.
MNC Securities analyst Reza Nugraha agreed that investors' are encouraged to buy stocks following the positive data release. Expectations of positive impact the data will have on issuers' performance prompted market participants to accumulate their portfolios on the stock exchange.
The positive economic data also encouraged foreign investors to book a net purchase of Rp1,872 trillion, with the financial sector and various industries posting the most significant increase of 3.3 percent. "The performance of the financial sector, particularly banks, will be more promising when conomic indicators showed significant progress," Reza said.
Nevertheless, the index's uptrend is likely to be hampered by the negative data of the Chinese manufacturing index. The index, which slowed to 48.0 in March, built traders' anxiety over China and the global economic outlook. Market participants also suggested taking into account stocks from banking, property, and consumers sectors.
"Today the index will remain strong in the range of 4,840 to 4,900," said Reza.
PDAT | MEGEL JEKSON