The BEI index has now reached more than 3,925 points and if no constraints hamper its development it may continue to rise as market players believe the Greek debt crisis is now entering its final stage, Ifan Kurniawan from PT First Asia Capital said here on Friday.
He said the optimism had prompted market players to buy shares in the domestic market causing the BEI index to rise.
"We are optimistic market players will buy shares after the Greek parliament agrees to budget austerity measures," he said.
He said the BEI index was also predicted to reach between 4,200 and 4,300 by the end of this year as foreign buyers continued to enter the Indonesian market.
Foreign buyers are optimistic the Indonesian stock exchange could still give bigger profits than other Asian stock exchanges.
He said the Indonesia stock exchange only grew around five percent in the first semester of this year or dropped from more than 14 percent in the same period last year.
But the growth is still higher than in other regional stock exchanges such as Kospi, Hang Seng and Singapore index, he said.
Analyst from PT Eko Capital, Cece Ridwan, meanwhile said the BEI index grew better in the past two weeks in July., supported by good performance reports from issuers in the second quarter this year.
He said Indonesia is still an attractive market for foreign parties to invest and get better yields.
"We are optimistic the market will be flooded by foreign buyers as share prices may still grow upward," he said.
(T.H-CS/H-YH/HAJM/F001)
Editor: Priyambodo RH
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