Indonesia Stock Index
May Regain Record in a Year
Aug. 20 (Bloomberg) --
Indonesia’s stock index, the world’s second-best performer this year, may
return to the record reached last year in the next 12 months as falling
interest rates boost growth, PT Batavia Prosperindo Aset Manajemen said.
Automotive, banks and property stocks may lead gains, said Ruddy Raharjo, head
of investment at
Batavia, Indonesia’s sixth- best performing fund in the past five years. The
Jakarta Composite Index reached a record of 2,830.26 in January last year,
before falling 61 percent to its October low. The measure has risen 68 percent
this year.
Shares are rebounding as Indonesia posted the fastest growth among Southeast
Asian nations even as the global economy remained in recession. President Susilo
Bambang Yudhoyono’s re- election last month raised expectations the
government will maintain policies that helped the economy to expand 4 percent
in the second quarter and curb inflation to a nine-year low.
“People were expecting company earnings to be devastated because of slumping
consumption, but that didn’t happen,” Raharjo, who manages the equivalent of
about $550 million, said in an interview in Jakarta on Aug. 18. The market is
“returning to its proper level,” he added.
Optimism over Yudhoyono’s economic policies after his re- election
overshadowed terrorist attacks last month. The measure surged 15 percent in
July, the sixth-best among 89 indexes worldwide tracked by Bloomberg, even
after the bomb blasts at the J.W. Marriott and Ritz-Carlton hotels in the
capital city of Jakarta killed nine people.
‘Healthy Correction’
PT Optima Kharya
Capital Securities, part of Indonesia’s Optima group, whose fund was voted
best mutual fund in the past two years by Indonesia’s Majalah Investor
magazine, said recent gains have outpaced
earnings potential. It predicts the Jakarta Composite may fall as much as 10
percent in the next month. The index declined 2.5 percent to 2,277.75
yesterday.
“It will be a healthy correction,” Arief
Budiman, head of research at Optima, said in an interview in Jakarta on
Aug. 18.
Yahoo! Mail Kini Lebih Cepat dan Lebih Bersih. Rasakan bedanya sekarang!
http://id.mail.yahoo.com
