Jakarta index extends gain , rupiah on the decline

Jakarta (ANTARA News) - The Jakarta composite share price index opened higher on Thursday on positive domestic sentiment, analysts said.

The index of the Indonesian Stock Exchange (BEI) rose 11.28 points or 0.22 percent to 5,218.40 points with index of 45 most liquid stocks up 0.32 percent to 900.36.

"Relatively stable fluctuation of rupiah was one of the factor propping up the BEI index," Head of Research of Valbury Asia Securities Alfiansyah said.

The plan of the government to allow state companies to cut their dividend payment to the state budget in 2015 is another positive factor, Alfiansyah said.

Externally, global markets also are in positive area contributing to pushing up the BEI index.

The global markets were boosted by the result of the meeting of the Fed in December 2014 indicating that inflation did not have to rise from the present level to allow the central bank to raise its benchmark interest rate, he said.

Regional markets such as Hang Seng, Nikkei and Straits Times recorded an increase in indices.

Meanwhile, rupiah lost more value on Thursday morning trading at the level of 12,726 per US dollar from earlier level of 12,725 per dollar.

"Rupiah is still weak but there was less pressure," Samuel Sekuritas economist Rangga Cipta said.

He said there would be less pressure on rupiah with the falling prices of oil in the world market, adding the government is expected to cut further the price of subsidized oil fuels (BBM) in February.(*)