Jakarta (Antara Bali) - The Jakarta composite index (JCI) opened higher on Thursday boosted by positive statement of international rating agency on Indonesia.
The index of the Indonesian Stock Exchange (BEI) rose 5.99 points or 0.12 percent to 5,172.04 points with index of 45 most stocks up 0.25 percent to 891.94.
Head of Research of Valbury Asia Securities Alfiansyah said the statement by Fitch Ratings gave optimism to the market players that investment prospects would be better in the country.
"Fitch has confirmed the rating of Indonesia sovereign debts at BBB- (triple B minus) with stable prospect," Alfiansyah said.
The rating means that Indonesia remains in the "investment grade" since late 2011 .
The rating would give greater confidence for foreign investors in Indonesia's economy, he said.
He said Fitch saw that the country's macro economic policy is consistent with the 'stability over growth' policy adopted by Bank Indonesia.
Fitch predicted that the country's current account deficit would be stable at 3.2 percent of the GDP in 2014 and would improve to 2.9 percent in 2015
"It is expected that the investment climate would continue to improve with emphasis on infrastructure, pruning of bureaucracy and increase in wages based on productivity," Alfiansyah said.
Regional markets such as Hang Seng, Nikkei and Straits Times recorded an increase in indices.
Meanwhile, the value of rupiah in interbank transaction in the opening trade on Thursday fell against the US dollar.
The currency traded at the level of 12,307 per dollar weakening from earlier level of 12,294 per dollar.
"US data released last night were not all good but the dollar continued to rise over the majority of the Asian currencies including rupiah," Samuel Sekuritas' economist Rangga Cipta said.
Rangga said the ADP (Automatic Data Processing) of the US workers fell in November while data of ISM (Institute for Supply Management) of US non manufacture rose .
On the other hand, investors are awaiting the result of the meeting Wednesday night of the European Central Bank.
Investor hope to hear additional stimulus with economic condition in some European countries remain in the doldrums.
The rupiah fall, however was checked by Bank Indonesia, which is quite active in protecting the domestic currency.
"Rupiah fall together with a number of other Asian currencies. Bank Indoensia has said it had intervened to reduce the pressure on rupiah," Rangga said.
Chief researcher of Woori Korindo Securities Indonesia Reza Priyambada said positive sentiment with the improvement of the country's trade balance is not enough to hold rupiah from falling.
"Release showing an increase in chain store sales and in construction spending gave positive sentiment to the US dollar," Reza noted. (WDY)
COPYRIGHT © ANTARA News Bali 2014
The index of the Indonesian Stock Exchange (BEI) rose 5.99 points or 0.12 percent to 5,172.04 points with index of 45 most stocks up 0.25 percent to 891.94.
Head of Research of Valbury Asia Securities Alfiansyah said the statement by Fitch Ratings gave optimism to the market players that investment prospects would be better in the country.
"Fitch has confirmed the rating of Indonesia sovereign debts at BBB- (triple B minus) with stable prospect," Alfiansyah said.
The rating means that Indonesia remains in the "investment grade" since late 2011 .
The rating would give greater confidence for foreign investors in Indonesia's economy, he said.
He said Fitch saw that the country's macro economic policy is consistent with the 'stability over growth' policy adopted by Bank Indonesia.
Fitch predicted that the country's current account deficit would be stable at 3.2 percent of the GDP in 2014 and would improve to 2.9 percent in 2015
"It is expected that the investment climate would continue to improve with emphasis on infrastructure, pruning of bureaucracy and increase in wages based on productivity," Alfiansyah said.
Regional markets such as Hang Seng, Nikkei and Straits Times recorded an increase in indices.
Meanwhile, the value of rupiah in interbank transaction in the opening trade on Thursday fell against the US dollar.
The currency traded at the level of 12,307 per dollar weakening from earlier level of 12,294 per dollar.
"US data released last night were not all good but the dollar continued to rise over the majority of the Asian currencies including rupiah," Samuel Sekuritas' economist Rangga Cipta said.
Rangga said the ADP (Automatic Data Processing) of the US workers fell in November while data of ISM (Institute for Supply Management) of US non manufacture rose .
On the other hand, investors are awaiting the result of the meeting Wednesday night of the European Central Bank.
Investor hope to hear additional stimulus with economic condition in some European countries remain in the doldrums.
The rupiah fall, however was checked by Bank Indonesia, which is quite active in protecting the domestic currency.
"Rupiah fall together with a number of other Asian currencies. Bank Indoensia has said it had intervened to reduce the pressure on rupiah," Rangga said.
Chief researcher of Woori Korindo Securities Indonesia Reza Priyambada said positive sentiment with the improvement of the country's trade balance is not enough to hold rupiah from falling.
"Release showing an increase in chain store sales and in construction spending gave positive sentiment to the US dollar," Reza noted. (WDY)
Editor : I Gusti Bagus Widyantara
COPYRIGHT © ANTARA News Bali 2014