Property shares gain today

Indonesian stocks grew for a second day today, before of the central bank’s monthly meeting on monetary policy.

The benchmark Jakarta Composite Index (JCI), gained 19.15 points (equivalent to 0.4%), to 5,132.39, expanding Monday’s 1.2% advance. Approximately 6.1billion shares valued at Rp5.5trillion ($466million), altered hands on the Indonesia Stock Exchange (IDX). This is still visibly lower than its year’s daily average turnover of Rp6.2trillion. Gainers were ahead of decliners by 181 to 103. Foreign investors accounted for Rp3.5trillion or 64% of the total trading value. They purchased Rp452.4billion in shares more than they sold.

Bank Indonesia, the Nation’s central bank is scheduled to announce its decision on interest rates this Thursday. Economists assume the central bank will maintain its policy rate at 7.5%. It has kept its rate unchanged since November following a gradual increase by 175 basis points in recent months.

All sectors with the exception of agriculture and miscellaneous, grew on the local bourse. Property shares as group, led sectors, with a 0.9% gain. Lippo Karawaci, one of the major property developers of Indonesia, increased 3% to Rp1,205. Surabaya based, Pakuwon Jati gained 2% to Rp445. Infrastructure stocks gained 0.9%. State-owned toll road operator, Jasa Marga contributed 1.6% to Rp 6,250.

Basic industry increased by 0.7%.The manufacturing unit of state controlled construction company Wijaya Karya, Wijaya Karya Beton gained 1.6% to Rp950.

The rupiah strengthened 0.4% to 11,677 against the US dollar from 11,728 on Monday, according to Bank Indonesia data. The yield on the government’s ten year note fell to 8.3541% from 8.3654%, as seen in data from the Indonesia Bond Pricing Agency.