Yudith Ho and Fathiya Dahrul – Indonesia's stock benchmark is on course for a fresh record high on the back of signs of an economy recovery.
The Jakarta Composite Index of shares gained as much as 0.3% to reach 6704.464, set for a new all-time high close. Bank and consumer stocks led the gains, with PT Bank Central Asia climbing as much as 1.3% and PT Unilever Indonesia surging 5.5% as of 9:36 a.m. in Jakarta.
"Indonesia's index has slightly trailed other countries, we're playing catch up," said Ferry Wong, head of Asean and Indonesia research at Citigroup Inc. "And Indonesia's position now is relatively far better. We're being helped by gains in the commodity market."
Southeast Asia's largest economy is set for a quicker growth rebound as it eases movement restrictions and reopens borders after reining in Covid-19 cases and deaths to the lowest levels since the middle of 2020. Household spending is showing signs of a pick up, while the commodities boom is bolstering the economy, which remains a major exporter of coal and palm oil.
Foreign investors have bought $2.9 billion more Indonesian shares than they've sold so far this year, while neighboring countries including Philippines and Thailand recorded outflows.
"Despite the ongoing rally, we think the recovery remains under-appreciated as JCI is still a laggard in global and regional markets," Tushar Mohata, an analyst at Nomura Holdings Inc., wrote in an Oct. 18 report. The market has shown "one of the fastest recoveries."