Jakarta Index Extends Gain

Jakarta, Oct 21 (Antara) - The Jakarta composite share price index extended gain though slightly in the opening trade on Monday. The index of the Indonesian Stock Exchange (BEI) opened 11.04 points or 0.24 percent higher at 4,557.61 points with the index of 45 most liquid stocks up 0.38 percent to 770.62 points. "The BEI index gained again but only slightly because of minimun domestic sentiments," Samuel Sekuritas` analyst Benedictus Agung said. Asian market including BEI gained on expectation that the US central bank would delay monetary stimulus tapering. "The market believe that The Fed would postpone tapering off until next year," Benedictus said. Head of Research of Valbury Asia Securities Alfiansyah said the crucial problem over market uncertainty has been over. The attention of the market players is now drawn to economic data. Among the economic data attracting the attention of the market players this week would be US labor data as they would want to see the impact of the recent partial US government shutdown, he added. Hundreds of thousands of US workers lost jobs or were suspended when negotiations between the US government and the Congress were deadlocked on debt ceiling earlier. In addition, Chinese economic data in the third quarter was considered positive creating improvement in the market prediction of the global economic prospects. "For Indonesia, Chinese economic growth would be a good news as the impact would be positive especially in reducing the pressure of the country balance of payment deficit," he said. Regional market such as Hang Seng recorded at 0.63 percent increase in index to 23,486.79 points with Nikkei-225 index up 0.69 percent to 14,661.93 points and that of Straits Times gaining 0.38 percent to 3,204.98 points. Meanwhile, rupiah also extended gain against the US dollar on expectation The Fed would not cut its monetary stimulus in the near future. In interbank transaction rupiah traded at the level of 10,960 per dollar in the first minutes of trading on Monday gaining from 11,108 in the last weekend`s close. "Asian currencies including rupiah gained on Monday," Trust Securities` chief researcher Reza Priyambada said. Reza said the US needs to postpone the monetary stimulus tapering as its economy has not yet fully recovered from the impact of the partial government shutdown. "The shutdown has bad impact on that country`s economy slowing its growth," he said. In addition, the sentiments in Asia are encouraging to push up the regional currencies marked with the increase in investment in securities in Japan, and a 7.8 percent expansion of the Chinese GDP year on year, he said. Financial market observer Rangga Cipta of Samuel Sekuritas said optimism remain good on the domestic market after the succeed in averting default on US debt repayment although it is not permanent . The postponement of The Fed monetary stimulus tapering would give time for Indonesia to improve its export and import performance and cut the deficit.