Jakarta Composite Index Up Following BBM Price Hike

Jakarta, Nov 18 (Antara) - The Jakarta composite index (JCI) opened 0.46 percent higher on Tuesday, on positive sentiment from the government`s decision to raise the subsidized oil fuel price. The government announced the price hike on Monday night raising the prices of subsidized gasoline and automotive diesel oil by Rp2,000 per liter to Rp8,500 and Rp7,500 per liter respectively. The index of the Indonesian Stock Exchange (BEI) rose 23.16 points to 5,077.10 points with index of 45 most liquid stocks up 0.67 percent to 873.04 points. "The JCI extended gain with the domestic positive catalyst in the form of subsidized BBM price hike," chief researcher of Valbury Asia Securities Alfiansyah said . Alfiansyah said many sectors would have positive impact with the government`s policy of appropriating subsidy for productive sectors such as infrastructure, public welfare protection and construciton of more power plants. Another positive domestic sentiment is the agreement reached by two opposing coalitions in the House of Representatives, he said, adding political conflicts have caused much concern among investors in the country. Positive external sentiment came from the United States with gain recorded by the U.S. market, contributing to positive sentiment on the domestic market, he said. Regional markets such as Hang Seng, Nikkei and Straits Times recorded an increase in indices.