TEMPO.CO, Jakarta – Positive sentiments from Asian bourses and investors' enthusiasm of a new government helped the domestic stock market to close strong on yesterday's trade. The Jakarta Composite Index (JCI) gained 11.58 points (0.23 percent) to 5,040.53 after the successful swearing-in ceremony of new president Joko Widodo. Yesterday's trade saw 5.5 billion shares worth Rp7.6 trillion transacted, with a foreign net buy amounting to Rp746 billion.
Analyst from First Asia Capital Indonesia, Ivan Kurniawan, said the domestic market was bullish on the strengthening of regional bourses as well as the political sentiment from Jokowi's inauguration.
"The purchases showed that investors are enthusiastic about the new president," he said yesterday.
However, Ivan said the market should not expect that the euphoria of a new government will continue to lead JCI to post records anytime soon, because fundamentally, the economy is slowing and commodity prices are down.
"Investors should not allow their high expectation on the new government to make them forget about the fundamental data," said Ivan.
Ivan suggested investors to remain cautious and not buy too aggressively. Today, China is scheduled to release its GDP growth and manufacturing data, which are expected to remain flat. "The JCI will move between 4,980 to 5,072 bps today, vulnerable to profit-taking," he said.
PDAT | M. AZHAR
