Jakarta Index Gains On Thursday

Jakarta, Sept 19 (Antara) - The Jakarta composite share price index surged in the opening trade on Thursday on report that the Fed decided not to reduce its monetary stimulus. The index of the Indonesian Stock Exchange (BEI) opened 113.32 points or 2.54 percent higher at 4,576.57 points with index of 45 most liquid stocks rising 28.90 points or 3.84 percent to 781.11 points. "Asian market including BEI gained after The Fed unexpectedly announced its decision that its monetary stimulus is not yet to be reduced," Samuel Sekuritas` analyst Benedictus Agung said. Benedictus said an increase in the commodity prices following a 2.5 percent rise in oil price to US$108 per barrel in the world market, added to positive sentiment in the market. "With positive sentiments in the global market and relatively stable rupiah, the BEI index is expected to gain today," he said. Shares in a number of sectors hit by negative sentiments earlier such as consumer, cement and telecommunication stocks are expected to gain on Thursday, he said. Regional markets such as Hang Seng posted a 1.71 percent rise in index 23,513.78 points with Nikkei-225 index gaining 1.04 percent to 14,655.53 points and that of Straits Times up 1.66 percent to 3,005.58 points. Meanwhile, rupiah value remained unchanged against the US dollar in the first minute of trading on Thursday , flat at the level of 11,324 per dollar in inter-bank transaction. "Rupiah remained unchanged but the decision of The Fed not to cut its monetary stimulus would serve a positive sentiment to the Indonesian currency, Trust Securities` chief researcher Reza Priyambada said. Reza said foreign investment is expected to return entering the Indonesian stock market resulting in stronger rupiah. In addition Bank Indonesia (BI) has raised its benchmark interest rate from 7 percent to 7.25 percent giving greater attraction to foreign investors, he said. Monex Investindo Futures` chief researcher Ariston Tjendra said the US dollar has weakened against almost all other global currencies with The Fed deciding to maintain the program to purchase US$85 billion worth of bond every month. "It was a decision that surprised everyone as the market would have been satisfied if it cut the bond purchase program by US$10 billion," Ariston said. The Fed maintains the program as the US economic data fell short of expectation.