Benchmark Stock Index Up on Friday Boosted by Pence Visit, Unchanged Central Bank Key Rate
Jakarta. Indonesia's benchmark stock index rebounded on Friday (21/04) after a decline in the previous day, on the back of a positive sentiment on the domestic market.
The Jakarta Composite Index (JCI) closed 1.23 percent higher at 5,664.75, gainers beat decliners 184 by 136.
It was an expected rebound from Thursday's 0.2 percent loss, when property stocks were hit by concerns over the fate of developments in the controversial North Jakarta reclamation project, after quick counts indicated that incumbent Jakarta Governor Basuki "Ahok" Tjahaja Purnama, who supported it, lost the election.
Analysts had said the unexpectedly peaceful Jakarta gubernatorial election had improved long-term prospects for investors.
Stocks in the miscellaneous industry category, which include stocks in automotive sector, gained 5.63 percent on Friday, while infrastructure, utilities and transportation stocks surged by 4.29 percent.
Binaartha Sekuritas equity analyst Nafan Ali said a bilateral trade agreement between Indonesia and United States had given the stock market a boost.
US Vice President Mike Pence arrived in Jakarta on Wednesday in a bid to boost strategic partnership between the two countries. Pence witnessed the signing of 11 memoranda of understanding between Indonesia and US companies worth more than $10 billion on Friday.
"Another positive factor was Bank Indonesia's decision to keep its benchmark rate unchanged," Nafan said.
On Thursday, the central bank decided to keep its seven-day reverse repo rate at 4.75 percent, its deposit facility rate at 4 percent and its lending facility rate at 5.5 percent.
The rupiah strengthened to 13,320 against the greenback on Friday, compared to 13,328 the day before, according to the Jakarta Inter-Bank Spot Dollar rate, compiled by Bank Indonesia.
The Indonesia Stock Exchange will see no trading on Monday, April 24, a public holiday. Trade will resume on Tuesday, April 25.
Tags: Keywords: