TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange went up by 18,18 points at the start of Wednesday's trading session - in line the general uptrend experienced by bourses across Asia.
The IDX went up by 18.18 points or 0.36 percent to begin trading at 5,019.48 points, while the Top 45 (LQ45) Index went up by 4.55 points or 0.54 points to 851.08 points.
An analyst for Samuel Sekuritas, Tiesha Narandha Putri, said that Asian markets - IDX included - are moving upwards in response to the uptrend in the United States (US) share market.
"The growth of the US share market is fuelled by the recent release of US consumer confidence figure, which exceeds previous expectations," said Tiesha.
That said, she predicts that JCI's uptrend will remain limited as the domestic market is shadowed by rife speculation that the government may postpone its' plan to increase the price of subsidised fuels.
"Market players had anticipated that the new prices will be put in place by early November, but to this point, the government has yet to send out positive signals that it plans to go ahead with the planned hike," said Tiesha.
On the other hand, the under-performance of a number of publicly listed companies also adds pressure which may in turn work against JCI's uptrend.
The Head of Research at Valbury Asia Securities, Alfiansyah, said that domestic political sentiments adds to the pressure posed by the under-performance of a number of major companies during the third quarter of 2014.
"Investors are worried over the capacity of the new administration to deal with major external pressures, such as the Fed's policy normalisation, as well as disappointing growth figures posted by China," said Alfiansyah.
Meanwhile across Asia, the Hang Seng Index went up by 208.77 points or 0.89 percent to 23,729.13 points, while the Nikkei also went up by 190.87 points or 1.22 percent to 15,517.35 points. Singapore's Straits Times Index also went up by 16.56 points or 0.51 percent to 3,227.80 points.
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