IDX may close the year at 3,900

The Jakarta Post | Tue, 11/30/2010 11:15 AM | Business

JAKARTA: David Chang, director of PT UOB Kay Hian Securities, still sees further upside for the Indonesian Stock Exchange (IDX), and expects the index to close the year at 3,900, and up to 4,600 by the end of 2011 given the continued torrent of capital inflows to the country.

“With solid economic fundamentals, strong corporate earnings growth, firm local currency and stable political climate, we should see positive fund flow to Indonesia over the next 12 months,” Chang said at the launch of the UOB Kay Hian UTRADE Internet trading platform Monday.

UTRADE allows investors to trade anytime, anywhere on the Indonesian and regional stock exchanges in Singapore, Hong Kong, Thailand, Malaysia and the United States.

Headquartered in Singapore, UOB Kay Hian is 99 percent owned by Singapore’s largest brokerage house, UOB Kay Hian Holdings Ltd., which itself is controlled by United Overseas Bank, the majority owner of local bank PT Bank UOB Buana.

“Given the continued rush of foreign capital to Indonesia, the launch of UTRADE cannot come at a better time for Indonesian investors seeking to invest in the more buoyant Asian markets,” UOB Kay Hian’s president Himawan Gunadi said.

Gunadi expected transactions from Internet trading to rise rapidly to contribute about 30 percent of the company’s brokerage earnings. — JP

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