REPUBLIKA.CO.ID, JAKARTA -- The Jakarta composite index (JCI) extended gain on Wednesday opening 0.20 percent higher on stable economic fundamental of the country, analysts said.
The index of the Indonesian Stock Exchange (BEI) rose 10.26 points to 5,176.35 points with index of 45 most liquid stocks up 0.29 percent to 893.49 points.
Asjaya Indosurya Securities' analyst William Suryawijaya said stable economic fundamental of the country gave a positive sentiment to the market , prompting investors to buy shares.
"There is no cause for the JCI to fall with stable political and economic condition," William said.
External sentiments were also positive with speculation that the European Central Bank (ECB) would launch a bond buying program and encouraging report from China that the Gross Domestic Product (GDP) of the world's second largest economy grew strongly by 7.3 percent in the last quarter of 2014.
"The BEI index is expected to climb to the level of 5,122-5,201 point today," he said.
A team of technical analyst of Mandiri Sekuritas said the target set by the government for budget deficit at 1.9 percent of GDP in 2015 , down from 2.21 percent set earlier also contributed to the positive sentiment.
The decline in budget deficit would result in a cut in the total need of financing from Rp245.9 trillion to Rp225.9 trillion.
Meanwhile, the government plans to cover the deficit in the 2015 state budget with a funds to be raise from the sales of samurai bonds, global bonds, sharia bonds and euro bonds.
Financing with funds from the foreign currency denominated bonds funds is estimated to account for not more than 20 percent of total financing requirement.
Regional markets such as Hang Seng , Straits Times recorded gain in indices and Nikkei recorded a decline.
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