VIVAnews - The Indonesia Stock Exchange (IDX) will still have its share price gains in 2010 as the global and domestic economy are recovering and foreign investment managers are investing to the markets in developing countries.
However, the banking case involving Bank Century should be solved as soon as possible to prevent further polemics from circulating.
Capital market analyst Haryajid Ramelan and an economist at Bank Negara Indonesia, Ryan Kiryanto, brought up the above issue on Tuesday, Dec 22, in a discussion at the Pasific Place, Jakarta.
"The benchmark index may gain to 2,800 next year," said Haryajid.
He stated that the global and domestic economy would likely hit positive zone in 2010 while IPOs are expected to bring in positive sentiment for the capital market.
"Global investment managers are still eyeing developing countries as the investment destinations," he said.
However, he suggested investors and stock market authorities should monitor the Bank Century case and commodities' prices.
Ryan commented on Bank Century case saying that anticipations should be made to maintain political stability in the country.
"Several investment managers are beginning to ask about the political condition," he said.
Haryajid said Finance Minister Sri Mulyani Indrawati should be prudent in giving statements.
Based on data of PT Kustodian Sentral Efek Indonesia (KSEI), the value of transaction of local investors up until the end of November 2009 was worth Rp 360.35 trillion while foreign investors hit Rp 748.76 trillion.
On the other hand, foreign investors own 67.5 percent of share ownership of Rp 1,109.11 trillion in total, a slight fall compared to the same period in 2008 at 67.8 percent.
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Translated by: Bonardo Maulana Wahono
