April 5, 2010.
Rate Expectations Push JCI to Record High
The Jakarta Composite Index surged to a new all-time high and the rupiah hit its strongest level in more than two years on Monday as investors, mostly foreign funds, snapped up domestic stocks on expectations that the central bank will keep its benchmark interest rate at a record low today.
Analysts said low interest rates would help boost economic growth, and investors were turning to Asian countries, including Indonesia, in search of higher returns as the recoveries in the United States and Europe struggled to gain traction.
The JCI rose 57.25 points, or 2 percent, to close at 2,887.24, surpassing its previous record close of 2,830 on Jan. 9, 2008.
The benchmark index has climbed 15 percent this year, making it the best-performing stock market in Asia, excluding the Osaka Hercules in Japan.
“Foreign investors focused on buying blue chip stocks, which was reflected in the rupiah’s appreciation,” said Syaiful Adrian, an equities analyst at PT Ciptadana Sekuritas.
EMERGING MARKETS-Stocks hit all-time
highs in Mexico, Argentina
* Brazil's Bovespa up for 6th session, hits 22-month high
* Mexico stocks, peso gain on bets of US-driven rebound
* Argentine assets rally on debt swap expectations
* Chile's cenbank minutes hint at rate hike after quake
NEW YORK, April 5 (Reuters) - Further signs of recovery in
the U.S. economy propelled Latin American financial markets on
Monday, sending Mexican stocks to an all-time high and the
country's currency to its strongest in 17 months.
In Mexico, which sends 80 percent of its exports to the neighboring United States, the IMEF manufacturing sector index jumped to its highest level in almost 3-1/2 years.
Bets that Mexico will be the Latin American country to
benefit the most from the U.S. economic recovery sent the
country's IPC stock index .MXX closed up 1.15 percent to a
record high 33,648.89 points.
Argentina's MerVal stock index .MERV also finished at an
all-time high, after jumping 3.19 percent on the day on
expectations the government will get a high rate of acceptance
in a planned swap of defaulted bonds.
Brazil's Bovespa index .BVSP rose 0.22 percent to a fresh
22-month high, in its sixth consecutive session of gains.