July 23, 2014 / 2:25 AM / 3 years ago

Indonesian shares rise after Jokowi wins presidential election

2 Min Read

JAKARTA, July 23 (Reuters) - Indonesian shares rose nearly 1 percent on Wednesday after Joko "Jokowi" Widodo was declared the winner of Indonesia's presidential election, bringing the promise of major reforms to the world's third-largest democracy.

The Jakarta stock exchange hit as high as 5,126.28 points as of 0206 GMT, adding to gains in the past few weeks on expectation that Jokowi would win.

Major gainers include construction-related stocks such as PT Wijaya Karya Beton Tbk, which rose more than 4 percent, and PT Semen Indonesia Tbk, which advanced more than 2 percent. Jokowi had said infrastructure will be a focus area in his presidency.

The Elections Commission, known as KPU, said on Tuesday the Jakarta governor had won by just over six percentage points, with 53.15 percent of nearly 130 million votes.

"Uncertainty over leadership change has subsided, which should be taken positively," Citigroup said in a report.

"However the backdrop remains that Indonesia faces pressing macroeconomic issues which in our view will require bitter policies in the first months or weeks after the 20-Oct inauguration." (Reporting by Eveline Danubrata)

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