Jakarta index opens higher on Wednesday

Jakarta (ANTARA News) - The Jakarta composite index (JCI) opened higher on Wednesday on positive external and domestic sentiments, analysts said.

The index of the Indonesian Stock Exchange (BEI) rose 28.89 points or 0.67 percent to 4,347.48 points with index of 45 most liquid stocks up 1.02 percent to 734.02 points.

Head of Research of Valbury Asia Securities Alfiansyah said the majority of global markets recorded gain and meanwhile, the government is expected to announce a policy package pushing up the share prices.

"The sentiments encouraged the market players to buy shares resulting in the price hike," Alfiansjah said.

He said the finance ministry is revising and abolishing regulations restricting economic development and investment and at the same time preparing fiscal stimulus for the business sector.

However, the share market is still facing a threat of capital flight with plan by the Fed to raise its interest rate.

An increase in the Feds fund rate would weigh on the developing economies, he said. ,

Meanwhile, senior analyst of LBP Enterprise Lucky Bayu Purnomo hoped that the government policy package would improve competitiveness of the countrys industry and accelerate implementation of strategic projects to offset the impact of the expected increase in the Feds fund rate.

"The policy package is expected to boost economic growth in the second half of the year," Lucky said.

Regional markets such as Hang Seng, Nikkei and Straits Times recorded gain in index.(*)