The index was expected to reach the psychological level at 3.700 with resistance at 3.715 ,"Jakarta (ANTARA News) - The Composite Stock Price Index (CSPI) of the Indonesian Stock Exchange regained some of its strength on Monday following positive sentiment generated by global shares and the Rupiah`s exchange rate.
Yualdo Yudopriwiro, a stock market analyst with Samuel Securities, said here on Monday the improvement in the global market sentiment was marked by foreign investors` buying actions worth Rp1.94 trillion at last week`s trading.
"The index was expected to reach the psychological level at 3.700 with resistance at 3.715 ," Yualdo said.
In the first trading session on Monday the index strengthened 36.061 points (0.98 percent) to 3.700.741 l, and the 45 superior shares (LQ45) went up 9.004 points or 1.39 percent to 658.694.
MNC Securities research head Edwin Sebayang said the index`s strengthening was also triggered by the issuers` financial reports on the third quarter of 2011 that their earnings per share (EPS) had grown by over 30%.
"Issuers` EPS at the Indonesian Stock Exchange (IDX) still showed positive performance and was not really affected by the global crisis," he said.
Oil prices also experienced a gain to a level of 87.1 dollars per barrel on Monday, while the rupiah regained some strength to Rp8.846 per US dollar.
Besides, the 15- percent strengthening of Asian stocks was attributed to the impact of positive sentiment from the strengthening of global stock markets last weekend, accompanied by greater optimism about the solution of the European debt crisis after the G20 leaders` meeting last week. (*)
Editor: Aditia Maruli Radja
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