A number of banking, automotive and crude palm oil stocks are expected to strengthen after past week correctionJakarta (ANTARA News) - The composite share price index of the Indonesian Stock Exchange (BEI) rose in Friday`s morning session to follow the trend in the regional markets.
The index rose 28.56 points or 0.71 percent to 4,033.33 with the index of 45 most liquid stocks (LQ45) up 1.08 percent to 687.96 points.
"Asian markets have continued with the rising trend since yesterday boosted by commitment announced by European Central Bank (ECB)to curb increase in yields of bonds issued by European Union countries," Christine Salim, analyst from Samuel Sekuritas, said.
Positive sentiment also came from US economic data showing better than expected progress made in coping with unemployment and durable goods orders, Christine said here today.
Meanwhile, market players are expecting first half of the year financial reports of issuers such as Astra International (ASII), the country`s largest automotive company and Bank Rakyat Indonesia (BBRI) second largest lender to be relatively in line with estimate .
"A number of banking, automotive and crude palm oil stocks are expected to strengthen after past week correction," she said.
Panin Sekuritas analyst Purwoko Sartono said the index tended to strengthen driven by expectation of improved financial reports of most issuers for the first half of the year.
"Market players will be prompted into buying action anticipating good financial reports," Purwoko said.
He recommended buying of a number of potential gainers like Garuda Indonesia (GIAA), Surya Semesta Internusa (SSIA), Gudang Garam (GGRM), Bank Negara Indonesia (BBNI), Bhakti Investama (BHIT).
Regio9nal markets reporting rise in index included Hang Seng up 1.92 percent to 19,255.65, Nikkei-225 up1.41 percent to 8,561.98 and Straits Times up 0.32 percent to 3,013.83 points.
(AS/O001)
Editor: Ella Syafputri
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