Jakarta index and rupiah gain in Friday`s opening

Jakarta (ANTARA News) - The Jakarta composite index (JCI) rose slightly in the opening trade on Friday driven by rupiah appreciation.

The index of the Indonesian Stock Exchange (BEI) opened 1.79 points or 0.04 percent higher at 4,993.43 points with index of 45 most liquid stocks up 0.14 percent to 849.78 points.

"The JCI gained on positive sentiment with the rupiah appreciation amid slump hitting regional markets," PT Asjaya Indosurya Securities analyst William Surya Wijaya said here on Friday.

William said continued inflow of foreign fund into the domestic market contributed to the JCI rise.

"Total inflow of foreign fund into the capital market since earler January reached Rp36 trillion and the trend is expected to continue," he said.

He predicted the JCI would rise hover around 4,962--5,032 points in Fridays trading suggesting buying the shares of Indomobil Sukses Internasiona (IMAS), Unilever (UNVR), Semen Indonesia (SMGR), Bank Central Asia (BBCA), and Bank Negara Indonesia (BBNI).

Head of Research of Valbury Asia Securities Alfiansyah said the JCI increase is expected to be limited after rally in the past few days.

Regional market such as Hang Seng fell 0.69 percent in index to 22,574.87 points with Nikkei index down 1.73 percent to 14,050.81 and that of Straits Times sinking 0.22 percent to 3,265.92 points.

Meanwhile rupiah in inter-bank transaction in the first minutes of trade on Friday gained to reach the level of 11,410 per US dollar from the earlier level of 11,446 per dollar.

"The rupiah appreciation was attributable to favorable political situation ahead of the presidential election," financial market observer from PT Platon Niaga Berjangka, Lukman Leong, said.

The market players are always sensitive to political developments , Lukman said.

The country will elect a new president on July 9 to replace President Susilo Bambang Yudhoyono, who would end his second presidential term.

Potential presidential and vice presidential candidates are acceptable to the market, he said.

He predicted rupiah would gain further next week on expected improvement in economic fundamentals of the country .

"Despite the slowdown, the countrys economic development is still well on the track," he said.

Chief researcher of Monex Investindo Futures Ariston Tjendra said signs of improvements in the condition of major economies would strengthen demand for risky assets including rupiah. (*)