(ID Photo/David Gita Roza)

Infrastructure, Miscellaneous Industries Propel JCI to Recoup Pre-Holiday Losses

BY :SARAH YUNIARNI

DECEMBER 29, 2016

Jakarta. Indonesia's benchmark stock index rose for a third consecutive day on Thursday (29/12) with all sectors booking gains, led by infrastructure and miscellaneous industries.

The Jakarta Composite Index closed 1.79 percent higher at 5,302.56, recovering almost all of last week's losses. Foreign investors accounted for less than a quarter of the total trade volume on the day, selling Rp 223.5 billion ($16.5 million) more in shares than they bought.

The infrastructure sector gained 2.3 percent, following the lead of miscellaneous industries, which rose 3.2 percent.

State construction company Waskita Karya was among the top gainers, rising 5.3 percent to Rp 2,600 a share its highest closing since Oct. 28. Astra International, the car distributor conglomerate with businesses spanning from palm oil to construction, rose 3.8 percent to a seven-week high at Rp 8,125 apiece.

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Danareksa Sekuritas analyst Lucky Bayu Purnomo said the government plans to add several infrastructure projects next year and that should boost Indonesia's economy.

"This positive sentiment will provide a breath of fresh air for investors," Lucky said, as quoted by Antaranews.com.

NH Korindo analyst Bima Setiaji said the JCI's gains on Thursday were part of year-end window dressing – a practice that involves fund managers propping up the performance of their funds by buying stocks that did well during the quarter and selling stocks that did not, to make it look more interesting before presenting it to investors.

The rupiah weakened to 13,473 against the US dollar on Thursday, compared to 13,470 on Wednesday, according to data from Bank Indonesia.

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