"Conducive national economic fundamental encourages investors to buy more shares resulting in stronger IHSG," Analyst from Indosurya Mandiri Sekuritas, William Surya Wijaya said.Jakarta (ANTARA News) - The composite share price index (IHSG) of the Indonesian Stock Exchange (BEI) hit a new record closing at 5,818.55 points on Wednesday.
The index closed 26.64 points or 0.46 percent higher than on Tuesday with index of 45 most liquid shares rose 0.44 percent to 978.63 points.
Analyst from Indosurya Mandiri Sekuritas, William Surya Wijaya said the possibility of Fitch Ratings to raise Indonesias rating encourage investment. Fitch Ratings has said Indonesian credit rating could increase if the national economic growth could be maintained.
"Conducive national economic fundamental encourages investors to buy more shares resulting in stronger IHSG," William said.
He said the latest economic policy package issued by the government aimed at expanding business and improve competitiveness of logistic service providers is expected to give greater confidence to foreign investors to do business in the country.
"Indonesia is still considered attractive for foreign investors, that the possibility of long term investment is still open that IHSG could climb higher," he said.
Based on BEI data there was Rp192.94 billion in "foreign net buy" on Wednesday trading. The previous record high of IHSG was 5,792.90 point recorded on 13 June 2017.
In Wednesdays trading there were 271,024 transactions with 17.687 billion shares worth Rp10.339 trillion changing hands with 118 shares gaining, 200 shares down in prices and 130 shares unchanged.
Meanwhile, the indices of regional shares including Nikkei, Hang Seng and Straits Times declined.(*)
Editor: Heru Purwanto
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