Dollar plunging fly CSPI

Trading of shares on the Indonesia Stock Exchange, Monday (05/10/2010),

at the opening of a crowded marketplace dominated by action and purchase of shares by market participants because of improvement in regional markets so that the Composite Index rose 1.69 percent. Jakarta Composite index rose 45.383 points at IDX to 2785.239 points and LQ-45 index increased 2.66 percent to 10.813 or 546.213 points.

Valas PT Sinarmas Securities analyst, Alfiansyah, in Jakarta, Monday, said the recovery of stocks in the United States is the main factor encouraging stronger regional exchanges that followed also by the shares in the Indonesian capital market. "The increase in stock prices triggered IDX index rose sharply by 45 points more," he said.

According Alfiansyah, the increase was also triggered by the weakening U.S. dollar in the regional market, both against the euro and the yen, after a few days ago the U.S. dollar strengthened.

"We are optimistic IDX index would bounce back later this afternoon at the closing because of the stronger market sentiment," he said.

He said the index is expected to return nearly 2900 points since the positive support is getting stronger. "If there are no impediments, IDX index will be back close to 2900 points," he said.

Moreover, continued Alfiansyah, Indonesian macro economic factors is a good enough reason for foreign actors for placing their funds in the domestic market. In addition, Bank Indonesia is also still set a benchmark rate (BI Rate) remained at 6.5 percent, which encourages foreign players continued to play in the domestic market, he said.