Indonesian shares close 0.77 percent higher on Monday

Jakarta (ANTARA News) - The Jakarta composite share price index (IHSG) closed 0.77 percent higher on Monday.

The benchmark Indonesian Stock Exchange (BEI) index rose 46.05 points to 5,998.19 points with the index of the 45 most liquid stocks up 1.58 percent to 1,007.89 points.

William Surya Wijaya, an analyst of Indosurya Sekuritas said, the countrys inflation, which was well under control in line with the governments target, indicated strong economic fundamentals of the country.

Strong economic fundamentals prompted investors to buy shares, William said.

"IHSG looks like to continue to regain strength to cross again the level of 6,000 points," he said.

On Tuesday last week, the IHSG hit an all time record at 6,070 points before it climbed down toward the end of last week.

The Central Bureau of Statistics (BPS) said the countrys inflation in November 2017 was 0.2 percent, bringing the total inflation in the first 11 months of the year to 2.87 percent with year-on-year inflation at 3.3 percent in November, 2017.

William said foreign investors are expected to buy more shares pushing up the index higher.

Trading frequency reached 430,834 transactions with 16,540 shares worth Rp10.757 trillion changing hands.

There were 121 gainers, 223 decliners with 116 stocks closing flat.

Regional markets such as Nikkei and Straits Times recorded a decline, and Hang Seng gained.

Meanwhile, rupiah regained some of its lost value in inter-bank transactions to 13,521 from 13,523 per U.S. dollar earlier.

"The rupiah value was higher against the dollar following positive market reaction to inflation well under control in November 2017," analyst of Binaartha Sekuritas Reza Priyambada said here on Monday.

The inflation was lower than the target set by the government strengthening expectation that the economy would grow as expected by 5.1 percent.

Analyst from Monex Investindo Futures, Putu Agus said the U.S. Senate has passed into law the tax reform bill reducing the U.S. dollar pressure.

Source: ANTARA News

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