JAKARTA, Feb 6 (Reuters) - Panin Asset Management, one of the biggest fund managers in Indonesia, sees a 12 percent rise in the Jakarta stock index this year as election spending boosts stocks in sectors such as consumer and transport, its director told Reuters on Thursday.
Indonesian shares are up 3.5 percent so far this year from the end of 2013. MSCI’s broadest index of Asia-Pacific shares outside Japan is down around 6 percent.
“We see the election giving an overall positive sentiment in Indonesia and this will attract foreign investors back to the country,” Ridwan Soetedja said.
Indonesia is due to hold a general election in April. Political parties must secure either 20 percent of the seats or 25 percent of the vote to nominate a candidate for the July presidential election.
Panin, a subsidiary of PT Panin Sekuritas, has asset under management of around 16 trillion rupiah ($1.3 billion).
Soetedja said he expects the rupiah to stabilise around 11,000 against the dollar, as well as a 6 percent GDP growth and a 4-6 percent inflation rate in Southeast Asia’s largest economy this year.
He favours the consumer goods, banking and property sectors as they may benefit from a fall in interest rate this year. But he said he would avoid the mining and plantation sectors amid slowing growth in China, a major commodities buyer. ($1 = 12,192.50 rupiah) (Reporting by Andjarsari Paramaditha; Writing by Eveline Danubrata; Editing by Miral Fahmy)