- Widodo S Jusuf
VIVAnews – The uncertainties in Europe’s situation and economic conditions made foreign investors choose to invest in Indonesia’s stock market which has prospectus fundamentals.
According to PT UOB Kay Hian Securities capital market observer, Steve Susanto, as long as the economy abroad has potential crisis, the Indonesian market will remained eyed by foreign investors. "They choose to invest in our stock exchange," he told VIVAnews.com in Jakarta, Thursday.
Those foreign market players, he said, chose to invest in mining and energy sector stocks. Therefore, stock prices in that sector are already discounted in line with the decline of commodity prices in global markets. "Obviously, when it’s cheap, foreign players entered with a projection of commodity prices strengthening again," said Susanto.
However, Susanto acknowledged, foreign investors will not last long in the stock market because they also try to find other alternative investments which are not less interesting. "Foreign investors will to-and-fro the stock exchange. Because they also choose to invest in bonds, mainly government-owned bonds," he said.
As is known, the action of capital market players who again revived the Indonesia Stock Exchange transactions by selective purchasing of a number of shares, managed to lift the composite stock price index (IHSG) yesterday.
"The transactions were mainly done by foreign investors," PT Sucorinvest Central Gani analyst, Gifar Indra Sakti, told VIVAnews.com in Jakarta, Wednesday.
According to Sakti, the yet unfavorable economy in Europe made global investment managers to reinvest their funds in Indonesia. "Our stock market is an option, in addition to the money market investments (U.S. dollar)," he said.
Moreover, Sakti added, the correction of composite stock price index in last few days was caused more by selling action of panicking investors who were affected by the weakening regional exchanges. "So, when the price is already much discounted, foreign investors began accumulation again," said Sakti.
Based on data from IDX, foreign investors in the regular market recorded purchase transactions valued at Rp1.49 trillion and released the ownership of the shares amounting to Rp1.24 trillion, resulting in net buying amounting to Rp257.73 billion.
The Composite stock price index on Wednesday’s closing rose 39.23 points, or 1.12 percent to a 3,513.17 level. Meanwhile, in trading on Tuesday, the stock price index also rose up to 157.80 points, or 4.75 percent at a 3,473.94 level.
Translated by Indah Lestari
Tukang Parkir Liar di Bekasi Serobot Lahan Warga, Ditegur Malah Ngamuk
Aksi tukang parkir liar menyerobot lahan milik warga di Jalan Belimbing Raya, Kelurahan Perwira, Kecamatan Bekasi Utara untuk disulap jadi lahan parkir viral di media sos
