Indonesia Benchmark Stock Index Gains 20% in 2017

Indonesia's benchmark stock index gained 20 percent this year, ending on an upbeat note in a year that saw steep gains in global equity and commodity prices. (Antara Photo)

By : Sarah Yuniarni | on 2:05 PM December 30, 2017
Category : Business, Markets

Jakarta. Indonesia's benchmark stock index gained 20 percent this year, ending on an upbeat note in a year that saw steep gains in global equity and commodity prices.

The benchmark Jakarta Composite Index closed at 6,355.65 on Friday (29/12), 0.66 percent higher than the previous day. The index rose 15.32 percent last year when it closed at 5,296.71.

Foreign investors, accounting for 65 percent of the total trade, bought Rp 337.74 billion ($24.95 million) more in shares than they sold on Friday, while domestic investors sold Rp 337 billion more in shares than they bought.

Gainers beat decliners by 149 to 222.

In the last trading day of 2017, the Indonesia Stock Exchange (IDX) saw its market capitalization increase by 22.55 percent to Rp 7,052 trillion due to fresh funds raised by newly-listed companies and existing companies.

"Our index achievement is beyond our expectation. We should appreciate the bourse's hard-working efforts," President Joko "Jokowi" Widodo said at the closing ceremony at IDX headquarters in Jakarta on Friday.

Indonesia's benchmark stock became the second-best performer in Southeast Asia, right below the Philippines, which gained 25 percent throughout this year.

Chief Economics Minister Darmin Nasution, Bank Indonesia Governor Agus Martowardojo, Finance Minister Sri Mulyani, Financial Services Authority (OJK) chairman Wimboh Santoso and Hoesen, head of capital markets at OJK, also attended IDX's closing ceremony.

IPO Targets Exceed Expectations

2017 has been a stellar year for the IDX as it has successfully attracted 37 new companies to list their shares on the local bourse, exceeding the year's target of 35 new public companies.

Prima Cakrawala Abadi, a fishery processing products, undertook its initial public offering on Friday, becoming the 37th company to list on the bourse.

"This year is our best achievement to have 37 listed companies, which is the highest for the past 23 years," said IDX president director Tito Sulistio.

Tito said investors are confident this year as Indonesia has secured investment grade ratings from global credit rating agencies - Fitch Ratings, Standard and Poor's and Moody's.

Total funds raised at the bourse recorded a total of Rp 802 trillion throughout this year. The funds come from a myriad of corporate actions, including IPOs (Rp 9.56 trillion), rights issuances (Rp 72.32 trillion), warrant sales (Rp 1.34 trillion), corporate and Islamic bonds (Rp 154.92 trillion) and government bonds (Rp 564.65 trillion).

Jokowi said that next year there will be many challenges, especially from external factors as analysts have been cautious in facing US Federal Reserve rate raises.

"Every year since 2015 when there was an election on that year, we always say wait-and-see. Let's separate [issues] between politics and economy. We should work together [to boost] the Indonesian economy," Jokowi said.

The rupiah strengthened to 13,548 against the US dollar on Friday, compared to 13,560 on Thursday, according to data from Bank Indonesia.

The IDX will be closed on Monday for the New Year's Day celebration. Markets reopen on Tuesday, Jan. 2.

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