Basic Industries Lead Jakarta Stock Exchange Sectoral Gains

Basic industry sector stocks recorded the highest increase throughout January 2017. The basic industry sector stock index closed at 557.663 on January 30, 2017, representing a 3.62 percent increase from its end-2016 position. Corporate actions undertaken by issuers and the release of financial reports stimulated investors to seek out fundamentally sound stocks.

The agri-business sector stock index for the period December 30, 2016 – January 30, 2017, recorded a 2.4 percent increase to 1,908.99, and the mining sector index also rose by 1.28 percent to 1,402.463. The rise in global crude oil prices, followed by other commodities, was able to trigger increases in several commodity stocks, both mining and plantation.

Indonesia's still-strong macroeconomic fundamentals and high consumer spending provide optimism for economic growth in 2017. This gives investors the opportunity to profit from stocks that remain quite prospective in the Year of the Fire Rooster. However, US President Donald Trump's beginning to realize his controversial campaign promises could create negative sentiment in the global market, including the Jakarta Stock Exchange. Furthermore, the Federal Reserve's planned interest rate hikes in 2017 remain a concern.