REPUBLIKA.CO.ID, JAKARTA-- Indonesia Stok market posted sizable gains on Thursday on optimism that the United States lawmakers were getting closer to reaching an agreement on lifting the debt.
The index of the Indonesian Stock Exchange (BEI) closed 29.24 points or 0.66 percent higher at 4,486.68 points with index of 45 most liquid stocks up 0.87 percent to 755.19 points.
"The BEI index closed higher again on optimism that the US government and the Congress would reach a compromise to raise the borrowing limit," Panin Sekuritas" said analyst Purwoko Sartono on Thursday.
Market also saw a new strong candidate Janet Yellen to replace Bernanke at the helm of The Fed as positive for her reputation as monetary stimulus proponent.
"The market in developing countries would have additional time to prepare to deal with stimulus tapering," he said. He warned, however, ahead of long Idul Adha holiday, share transactions on the domestic market tended to decline. He predicted the BEI index would fluctuate at the levels of 4,425--4,510 point on Friday .
Friday's trading on the BEI recorded 155,306 transactions with 3.903 billion shares worth Rp4.937 trillion changing hands. Gainers outpaced decliners by 170 to 107 with 93 shares remaining flat .
Regional markets such as Hang Seng recorded a 0.36 percent fall in index to 22,951.30 points. Nikkei-225 index rallied 1.12 percent to 14,194.71 points and that of Straits Times climbed 0.48 percent to 3,169.91 points.
Meanwhile, rupiah was again under pressure and losing more value against the US dollar to close at 11,500 per dollar on Thursday from the previous level of 11,213 per dollar.
The announcement by the International Monetary Fund revising down its global economic growth target to 2.9 percent gave a negative sentiment to the domestic financial market.
"The IMF target for the global economic growth was revised down from 3.6 percent and it weighed on the currencies of developing nations including rupiah," a financial market analyst from Bank Himpunan Saudara, Rully Nova said.
However, the correction of the rupiah value against the US dollar was still under control, he added.
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