Jokowi Effect Lifts Index
12 June 2014 00:10 WIB
TEMPO.CO, Jakarta – The market's positive response over Monday's presidential debate increases investors' confidence in the upcoming election, allowing the index to gain. On Wednesday's trade, the Jakarta Composite Index (JCI) rose 25.85 points (0.52 percent) to 4,971.94. The index's gain was also supported by the strengthening of Asian regional exchanges.
Satria Utomo, an analyst from PT Universal Broker Indonesia, said the domestic positive sentiment managed to help the index climb two days in a row. "Market participants are buying stocks after seeing the results of the debate that took place at the beginning of the week," he said yesterday.
The debate showed how Joko Widodo (Jokowi) and Jusuf Kalla managed to outperform their rivals Prabowo Subianto and Hatta Rajasa. The market's preference is clear from how the index advanced soon after the debate took place.
Satrio projected the index to keep moving up with the 'Jokowi effect'. "The index's next target is [to reach] 5,150 to 5,200," said Satria.
Today the index is predicted to move between 4,920 and 5,033. Some stocks to consider include Astra International, and those from the banking, construction, and property sectors.
PDAT | M. AZHAR
