Ito said foreign funds invested in domestic share market indicated that foreign market players have not lost confidence in the country`s capital market.
Jakarta (ANTARA News) - The Indonesian Stock Exchange (BEI) predicted the inflows of foreign funds into the country`s stock market, will remain strong through the rest of the year.

"So far this year, Rp17 trillion in foreign funds have entered the country`s stock market, despite fluctuations of foreign markets amid global economic slowdown," BEI President Ito Warsito said.

Ito said foreign funds invested in domestic share market indicated that foreign market players have not lost confidence in the country`s capital market.

"Foreign investors always split their funds into two - one for long term and another for short term investments," he said.

He said the country`s strong economic fundamentals have been one of the factors drawing foreign investors to the domestic capital market.

Based on data at BEI, foreign net buying in the third quarter of this year reached Rp14.35 trillion . In the second quarter of the year net selling by foreign investors reached Rp8.198 trillion and in the first quarter foreign net buying totaled Rp10.021 trillion.

BEI`s trade director Samsul Hidayat said foreign net buying was prompted by improved political and economic condition in the world.

Samsul said BEI has plan to increase the portion of local retail investors` ownership of traded shares .

Earlier, Rudi Utomo, the director of PT Evergreen Capital said foreign funds would continue to flow into Indonesian capital market driven by positive expectation of domestic economy.

"Slowdown of advanced economies would prompt investors to look for places where positive growth is still recorded like Indonesia," Rudi said.

In addition, companies listed on the Indonesian Stock Exchange also still showed positive performance, a condition that would keep the the market growing, attracting investors, he said.

"Listed companies continue expansion contributing to the country`s economic growth. In addition, the global crisis did directly have impact on the companies," he added.

He said expected success in lifting Europe and the United states from the crisis and in putting an end to Chinese and Indian slowdown would be a positive sentiments in the second half of the year.(*)

Editor: Heru Purwanto
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