REPUBLIKA.CO.ID, JAKARTA - Indonesian stocks rose on Wednesday, led by shares of large cap companies on hopes that Joko "Jokowi" Widodo would win the presidential poll and find a friendlier parliament that may help push through a reform agenda.
The Jakarta Composite Index was up 1.2 percent by 0659 GMT, hovering around its highest since July 10, led by financials. Political news flow on the real vote count continues to point toward Jokowi winning the election, analysts at broker Trimegah Securities wrote in a market strategy report.
Gains were led by a 2 percent rise each in Bank Central Asia and Astra International. Shares in Kalbe Farma gained 3.8 percent.
Optimism around a possible win for Jakarta Governor Jokowi, seen as more market friendly, had sent stocks to an over-13-month high on Thursday, the day after the election.
On Tuesday, several members of Indonesia's second-largest political party said they were considering joining Jokowi's camp, which could lead to a friendlier parliament that would help push through a reform agenda in Southeast Asia's largest economy.
Investors are returning to the market as the country's security condition has been quite stable after an election during which supporters of the two main candidates were expected to clash, said William Suryawijaya, an analyst with Jakarta-based Indosurya Securities.
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