Jakarta index up following naming of new finance minister
The composite index of the Indonesian Stock Exchange (BEI) extended gain after the announcement of the new Indonesian fFnance Minister.
The BEI index closed 1.5 percent higher at 5,222.99 points on Monday after the announcement naming Chatib Basri as the new finance minister replacing Agus Martowardoyo, who is now governor of Bank Indonesia.
The index of 45 most liquid stocks (LQ45) also rose 1.62 percent to the level of 884.13 points at the closing session.
"The election of the new Finance Minister Chatib Basri added to the positive sentiment on the domestic share market pushing up the BEI index to a new record," Trust Securities`s chief researcher Reza Priyambada said here on Monday.
Reza said the market already had positive sentiments with foreign investors entering the domestic share market and gains recorded by most Asian markets.
"Declining trend was recorded only for mining stocks," he noted.
HD Capital`s analyst Yuganur Wijanarko said the high increase in the BEI index has greatly impressed a number of market players in the country.
However, he warned of shares being overbought prompting profit taking.
"It would be wiser to wait and see than being too aggressive buying shares," he said.
Monday`s trade recorded 178,509 transactions with 5.259 billion shares worth Rp6.928 trillion changing hands .
Gainers dominated decliners by 172 to 122 with 100 shares flat.
Regional markets Hang Seng recorded a 1.78 percent rise in index to 23,493.03 points, Nikkei-225 posted 1.47 percent increase to 15,360.81 points and Straits Times gained 0.13 percent to 3,453.93 points.