Indonesian stocks rose on Tuesday, sending the benchmark index to its best January showing in six years as investor sentiment toward the region turned positive.
The Jakarta Composite Index added 26.53 points, or 0.7 percent, to close at 3,941.69, rebounding from its biggest loss in two months. The measure climbed 3.1 percent in January, the most it has gained to start a year since its 6 percent advance in the same month in 2006, according to Bloomberg data.
About 6.45 million shares, worth Rp 5.31 trillion ($590 million), were traded on the Indonesia Stock Exchange. Gainers beat decliners 120 to 95, while foreign investors sold Rp 100 billion more than they bought.
Mastono Ali, an analyst at CIMB Niaga, said the JCI was following advances from across the region. “Most of the blue-chip stocks that fell [on Monday] rebounded [on Tuesday], supporting the JCI,” he said.
Investors are awaiting today’s release on inflation. The consensus among economists is that January consumer prices rose 0.8 percent from December, and 3.9 to 4 percent year-on-year. Inflation in December was 3.79 percent.
Jasa Marga, a state-controlled toll road operator, gained 3.6 percent to Rp 4,375 on Tuesday after the company’s new chief said it would build a 200,000-hectare industrial estate in Java.
Laguna Cipta Griya, a property developer, rose 5.2 percent to Rp 101, its highest close since Oct. 23, 2007.
Laguna Cipta plans to sell new shares to enter the oil and gas industry as it considers investing $40 million to $50 million in an oil field in Sumatra, the company said in a statement to the exchange.
Additional reporting from Bloomberg