Indonesian Stocks Surge on Hopes for IMF-Led Debt Workout
Indonesian stocks rose to their highest in almost eight weeks on hopes an expected agreement with the IMF on Indonesia's $71 billion in private debt would bring some breathing space for Indonesia's economy. The Jakarta Stock Exchange Composite Index rose for a third day, surging 3.2 percent, or 17.2 points to 550, as 66 stocks rose and only 3 fell. It was the highest for the index since Feb. 2. PT Telkom, the domestic phone monopoly which accounts for about 18 percent of the benchmark index, surged 250 rupiah to 4,300. PT Gudang Garam rose 450 rupiah to 12,300, while rival tobacco company PT HM Sampoerna rose 225 to 8,350.
Bloomberg
Now I know why TLK surged on volume. Overseas money should start pouring into the Indonesia stockmarket, based on the fact that there market is cheap, if the IMF agreement works out. My feeling is that Indonesia has bottomed out. All the bad news is out. The downside is minimal from here. The upside will be terrific. I think the Indonesia stockmarket rose 5% yesterday and 1% percent today. Once market sentiment changes , watch out!
Is the glass of water half full or half empty? Last year from memory Russia, Turkey and the Indian stock markets soared over 100% While Malaysia, Indonesia and Korean stock markets were down between 50-75% and that does not include there exchange rates. Being the optimist,
I think Indonesia will recover in time. |
