TEMPO.CO, Jakarta - Domestic stock exchange managed to gain more ground last week after the United States data on non-farm payroll is expected to experience slow growth. Purwoko Sartono, Head Researcher of Panin Sekurities, said that amid the lack of positive sentiments, the condition managed to encourage domestic investors to purchase more shares.
Purwoko said that as Gross Domestic Product (GDP) growth in the first quarter of 2015 was predicted to be lowered by 4.71 percent, investors seem reluctant to enter the stock market.
Purwoko said that foreign investors become more reluctant after many believed that the economic slowdown was caused by the subpar performance of the Jokowi-Kalla administration. The recent removal of fuel subsidy and increasing tax revenue were believed to weaken the public's purchasing power.
Nevertheless, Purwoko expressed his optimism that the Jakarta Composite Index (IHSG) will continue to strengthen as infrastructure development projects commences.
PDAT | MEGEL JEKSON