Jakarta index gains , rupiah down

Analyst Benedictus Agung predicted BEI index would continue to be on a positive track to hover above 4,400 points on Monday.
Jakarta (ANTARA News) - Indonesia`s benchmark stock index extended gain in the opening trade on Monday on positive regional sentiment .

The index of the Indonesian Stock Exchange opened 0.99 percent higher at 4,418.99 points with index of 45 most liquid stocks up 1.56 percent to 748.19 points.

"Asian markets including BEI gained this morning with the withdrawal of Lawrence Summers from being candidate for new governor of the US Central Bank," Samuel Sekuritas` analyst Benedictus Agung said .

The market perceives Summers as belonging to those favoring a cut in the monetary stimulus by the US central bank, Benedictus said.

He predicted that BEI index would continue to be on a positive track to hover above 4,400 points on Monday.

A team of technical analysts of Mandiri Sekuritas said the market is awaiting announcement by the Central Bureau of Statistics about data of Indonesian trade balance and inflation.

Currently, however, the market`s attention is drawn to the meeting of FOMC (Federal Open Market Committee) to be held on Wednesday and Thursday.

Regional markets such as Hang Seng recorded a 1.3 percent increase in index to 23,212.68 points with Nikkei-225 index up 0.12 percent to 14,404.67 points and that of Straits Times gaining 1.42 percent to 3,165.28 points .

Meanwhile, the country`s currency rupiah fell in value against the US dollar in the first minute of trading on Monday.

Rupiah lost 40 points trading at 11,420 per dollar in inter-bank transactions from the level of 11,380 earlier.

Monex Investindo futures` analyst Zulfirman Basir said here on Monday, the sentiment in the global financial market is expected improve after Lawrance Summers decided to give up ambition to keep the post as governor of the US central bank.

With Summers away, the central bank is expected to go ahead with the original plan to provide monetary stimulus, Basir said.

However, the investors in the country are still worried bout the country`s high inflation, trade deficit and economic slowdown, he said.

He predicted rupiah will trade around 11,073--11,520 per dollar on Monday .(*)