Jakarta index up

The composite share price index of the Indonesian Stock Exchange (BEI) rose in Friday`s morning session to follow the trend in the regional markets. 

The index rose 28.56 points or 0.71 percent to 4,033.33 with the index of 45 most liquid stocks (LQ45) up 1.08 percent to 687.96 points.

"Asian markets have continued with the rising trend since yesterday boosted by commitment announced by European Central Bank (ECB)to curb increase in yields of bonds issued by European Union countries," Christine Salim, analyst from Samuel Sekuritas, said. 

Positive sentiment also came from US economic data showing better than expected progress made in coping with unemployment and durable goods orders, Christine said here today. 

Meanwhile, market players are expecting first half of the year financial reports of issuers such as Astra International (ASII), the country`s largest automotive company and Bank Rakyat Indonesia (BBRI) second largest lender to be relatively in line with estimate .

"A number of banking, automotive and crude palm oil stocks are expected to strengthen after past week correction," she said. 

Panin Sekuritas analyst Purwoko Sartono said the index tended to strengthen driven by expectation of improved financial reports of most issuers for the first half of the year. 

"Market players will be prompted into buying action anticipating good financial reports," Purwoko said. 

He recommended buying of a number of potential gainers like Garuda Indonesia (GIAA), Surya Semesta Internusa (SSIA), Gudang Garam (GGRM), Bank Negara Indonesia (BBNI), Bhakti Investama (BHIT).

Regio9nal markets reporting rise in index included Hang Seng up 1.92 percent to 19,255.65, Nikkei-225 up1.41 percent to 8,561.98 and Straits Times up 0.32 percent to 3,013.83 points.

Jakarta index extends gains

The Jakarta composite share price index continued to gain closing 31.61 points or 0.70 percent higher at 4,578.18 points on Monday.

The index of the Indonesian Stock Exchange (BEI) rose on market players buying more than selling shares especially shares of consumer goods companies.

The index of 45 most liquid stock rose 0.79 percent to the level of 773.75 points. 

"The increase in the consumption shares bought by investors followed growing strength of rupiah that contributes to purchasing power of consumers," Kresna Graha Sekurindo`s analyst Ryya Rusdiana Putra said. 

Gudang Garam the cigarette maker led an increase in the price of consumption shares after the cancellation of plan to raise tobacco excise tax next year. 

Etta Rusdiana Putra said the rise in the BEI index was also attributable to domestic sentiment such as inflation that has returned to a normal level in September, and positive global sentiment. 

"The pressure on global market has been lifted after the US agreement to raise its debt ceiling saving the wolrd`s largest economy from default and stronger growth of 7.8 percent recorded by China in the third quarter," she said. 

Trade on Monday on the BEI recorded 151,765 transactions with 4.113 billion shares worth Rp5.111 trillion changing hands. 

Gainers outnumbered decliners by 162 to 104 with 116 shares flat. 

Regional market such as Hang Seng recorded a 0.42 percent increase in index to 23,438.15 points with Nikkei-225 index up 0.91 percent to 14,693.57 points and that of Straits Times gaining 0.09 percent to 3,195.76 points.

Sources : Antara