The recent weakening of the rupiah did not affect foreign investors due to their long-term interests.
Jakarta (ANTARA News) - President Director of Indonesia Stock Exchange (BEI) Ito Warsito believes that the flow of foreign funds into the countrys capital market reflects investors confidence in Indonesia.

"On Thursday (March 3), foreign investors recorded a net purchase of Rp11,547 billion. They have added funds to the secondary market since the beginning of January," Warsito said here on Friday.

He remarked that the recent weakening of the rupiah did not affect foreign investors due to their long-term interests.

"Foreign investors make long-term investments. They are not concerned about the weakening value of the rupiah," he explained.

Warsito affirmed that foreign investors approve of Indonesia importing more capital goods because they can be processed into products with added value.

"They can be re-exported overseas," he stated.

According to the BEI president director, the situation will enable the Indonesian Composite Index (IHSG) to record a positive performance in 2015.

"If there is a correction, it will be good. If the stock prices rise, there will be a correction as investors will be realizing their profits," he pointed out.

The Jakarta Composite Index (JCI) closed slightly higher on Thursday with investors continuing to buy shares, albeit selectively.

The BEI index rose by 2.88 points, or 0.05 percent, to 5,450.94 points with the index of the 45 most liquid stocks up by 0.01 percent to 946.57 points.

An analyst from Asjaya Indosurya Securities, William Suryawijaya said that the JCI can remain positive, sustained by selective buying amid domestic economic data to be released, including that on the foreign exchange reserves that are expected to increase in February following improvements in trade balance.

"Expected increase in foreign exchange reserves and trade balance will keep the JCI in the positive zone," Suryawijaya noted.

Also, an increase in the price of oil also contributed to the JCI rise, with a surge in the prices of energy stocks, he added.

Moreover, Senior Funds Manager of BNI Asset Management Hanif Mantiq stated that a part of share market players were worried over the condition of the rupiah that continues to sink in value against the US dollar.

However, share investors can still bring their active strategies into play as the Indonesian economy is still good, as seen in the narrowing trade deficit.

As long as the JCI is maintained above the level of 5,300 points, this trend will continue and can hit the level of 6,000 points by the end of this year, Mantiq noted.

There were 206,405 transactions in Thursdays trading, with 4.20 billion shares worth Rp4.63 trillion changing hands.

Gainers outnumbered decliners by 154 to 141 shares, with 105 shares remaining flat.

In addition, regional markets such as Hang Seng and Straits Times recorded a decline in index, with Nikkei gaining.(*)

Editor: Heru Purwanto
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