Tuesday, 23 October 2018 | 18:17 WIB

JCI Opens Rising 18.49 Points, Investors Responded Positively to Infrastructure Development

Illustration: JCI

JAKARTA, NNC -- The Jakarta Composite Index (JCI) of the Indonesia Stock Exchange (IDX) opened on Wednesday (10/10/2018) in line with investors' positive response to infrastructure development.

The IDX composite index opened up by 18.49 points or 0.32 percent to 5,815.28 while the group of 45 blue-chip stocks or the LQ45 index moved up 4.60 points or 0.51 percent to 916.43 "In the midst of the sentiment of uncertainty in the trade war that could be affected for the world economy, shares on the IDX continued to strengthen," said Head of Research at Valbury Securities Alfiansyah in Jakarta, Wednesday.

He said investors responded positively to the government's efforts not to rely on the State Budget and the involvement of SOEs in financing infrastructure because they had limitations, the government opened private space in infrastructure financing.

"The involvement of the private sector is very helpful in overcoming the lack of government budget in the midst of increasing infrastructure development needs," he said.

On the other hand, he continued, stock exchanges in the Asian region which tend to move higher today (10/10) also contributed to the positive sentiment for the JCI.

Henan Putihrai Sekuritas analyst Indra said investors continued buying action against large capitalized stocks, so the JCI rebounds.

"Large capitalized stocks with low valuations are the target of investors," he said.

Meanwhile regional exchanges varied including the Nikkei Index which rose 5.84 points (0.02 percent) to 23,475.23, the Hang Seng Index which gained 260.30 points (0.99 percent) to 26,433.21, and the Straits Times Index which weakened 4.18 points (0.13 percent) to 3,162.42, Antara reported.