Jakarta index higher on positive response to infrastructure policy

Jakarta index higher on positive response to infrastructure policy

. (ANTARA /Reno Esnir)

Jakarta(ANTARA News) - The Jakarta composite index (IHSG) opened higher on Wednesday on positive response to government`s massive infrastructure development projects, analysts said.

The index of the Indonesian Stock Exchange (BEI) rose 18.49 points or 0.32 percent to 5,815.28 points with the index of 45 most liquid stocks up 0.51 percent to 916.43 points.

"Amid sentiment of uncertainties brought about the trade war, the IHSG continues the rising trend," chief researcher of Valbury Sekuritas, Alfiansyah, said here on Wednesday.

Alfiansyah said investors responded positively to the government`s plan not to rely on the state budget to finance infrastructure on limited budget fund. The government has decided to give the private sector a larger position in the infrastructure development and financing .

"Involvement of the private sector would greatly help the government in coping with financial difficulty in continuing infrastructure development," he said.

Meanwhile, Asian regional markets generally tended to strengthen giving positive sentiment to IHSG.

Analyst of Henan Putihrai Sekuritas, Indra said investors continued buying shares with large capitalization that strengthened IHSG.

Investors bought shares of large capitalization, which had fallen in price earlier, Indra said.

Regional markets including Nikkei and Hang Seng recorded an increase in index but the index of Strait declined.

Meanwhile, rupiah regained some of its lost value trading at the level of 15,210 per U.S. dollar from earlier level of 15,219 on intervention by the Bank Indonesia. Reporting by Zubi Mahrofi (SYS/AS).
Editing by A Saragih