"It is predicted that if Obama wins the election, there will be a fiscal cliff in 2013. And if Romney wins, there will be liquidity risks because the third round of quantitative easing might be stopped," analyst Yualdo Yudoprawiro said said.
Jakarta (ANTARA News) - The composite stock price index (IHSG) of the Indonesian stock exchange (BEI) opened 6.58 points higher on Wednesday, consistent with the rise in the regional stock exchange.

IHSG increased by 0.51 percent to reach 4,320.85 points and the LQ45 rose 1.68 points, or 0.32 percent, to 744.33 points.

"Overall, Asian markets seem to have strengthened this week. However, investors are awaiting the outcome of the US election. Based on the surveys conducted overnight, Barack Obama is expected to beat Mitt Romney by a nose," Samuel Security analyst Yualdo Yudoprawiro said here on Wednesday.

"It is predicted that if Obama wins the election, there will be a fiscal cliff in 2013. And if Romney wins, there will be liquidity risks because the third round of quantitative easing might be stopped," he noted.

Meanwhile, global commodity prices strengthened overnight, including crude palm oil (CPO) price, which increased by 4.2 percent, generating positive sentiments that led to the increase in IHSG.

Yudoprawiro predicted that IHSG would continue to rise in line with global commodity prices.

"Energy, coal and CPO sectors led the rally," he explained.

Meanwhile, Recapital Securities analyst Agustini Hamid stated that the Indonesian stock market was likely to rise until the weekend.

"However, investors have to focus on the result of the US presidential elections, which will be announced tonight," she noted.

"If Romney wins the election, investors will give a positive response, which will boost the financial markets," Hamid said.

She pointed out that Romney was from the Republican Party, which is believed to be a stronger supporter of the financial markets compared with Democrat Obama.

"I think IHSG BEI will move within the range of 4,290-4,320 points," Hamid said.

The Nikkei-225 index rose 22.49 points, or 0.25 percent, to 8,997.64 points. The Straits Times increased by 0.21 percent, or 3.61 points, to 3,022.94 points. However, the Hang Seng index dropped by 12.09 points, or 0.06 percent, to 21,932.34 points.(*)

Editor: Heru Purwanto
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