"The regional markets including BEI gained significantly as the market believed the US central bank would be less aggressive in cutting its monetary stimulus as the US economic data fell below expectation," analyst Purwoko Sartono said.Jakarta (ANTARA News) - Indonesia`s benchmark stock index continued to be on the increase boosted by the speculation that the FED would be less aggressive reducing its monetary stimulus.
The index of the Indonesian Stock Exchange (BEI) closed at 4,522.24 points or up 146.70 points from last weekend`s closing with the index of 45 most liquid stocks rising 3.92 percent to 766.76 points.
"The regional markets including BEI gained significantly as the market believed the US central bank would be less aggressive in cutting its monetary stimulus as the US economic data fell below expectation," Panin Sekuritas` analyst Purwoko Sartono said here on Monday. .
The Fed would likely cut the stimulus this week but the cut would not be as big as previously expected, Purwoko said.
In addition, Lawrence Summers, potential candidate to taker over as new governor of the Fed from Ben Bernanke,has withdrawn . Summers is known to be strongly in favor of cutting the stimulus.
Trading at the BEI on Monday recorded 189,387 transactions with 5.558 billion shares valued at Rp6.109 trillion changing hands.
Gainers outnumbered decliners by 249 to 55 with 91 shares flat.
Regional markets such as Hang Seng recorded a 1.47 percent rise in index to 23,252.41 points with Nikkei-225 up 0.12 percent to 14,404.67 points and that of Straits Times gaining 1.90 percent to 3,179.48 points.(*)
Editor: Heru Purwanto
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