Manulife: Indonesian Stocks May Gain 17% This Year | Wires
(The Insider Stories) — Indonesian stock market may rise by up to 17% this year, the biggest increase in three years, as a jump in minimum wage, low interest rate, and increasing members of the middle class spur domestic demand, Bloomberg reported Monday.
“Domestic-oriented stocks will be the biggest contributor to the index,” Alvin Pattisahusiwa, director of investment at PT Manulife Aset Manajemen Indonesia, was quoted as saying. Manulife Aset Manajemen is the second biggest mutual fund manager in the country, managing about $1.9 billion of assets.
Consumer spending makes up 55% of the country’s gross domestic product, on par with Thailand and compared with 74% in the Philippines, according to the Bloomberg report.
The Jakarta Composite Index has returned 14% in the first quarter, although elevated inflation will likely create volatility for stocks for the rest of the year, Pattisahusiwa said.
The Bloomberg report showed that the grouping of construction, property and real estate stocks has jumped 41% so far this year, the biggest sector rise of the JCI, while the mining group has lost 4.4% amid a slump in global prices.
