Foreign investors bought Indonesian bank stocks, including the world’s biggest micro lender PT Bank Rakyat Indonesia, sending the Jakarta composite index to its highest level in more than three months.
Foreign investors were net buyers of 92.8 billion rupiah ($9.78 million) worth of Indonesian shares in the first session trading on Thursday. The Jakarta composite index rose 0.38 percent to 4176.35, its highest level since May 9, in its first day of trading after Eid al-Fitr holiday.
Bank Rakyat gained 2.1 percent, Bank Negara Indonesia rose 1.96 percent, while Bank Mandiri edged up 1.8 percent, by 0618 GMT.
“Banks is the obvious pick at the moment as it directly affected into the economy as we see some positive signals from the United States to help boost growth,” said a local trader in Jakarta.
Asian shares rose on Thursday as Federal reserve’s minutes from July 31-Aug. 1 meeting showed it was likely to deliver another round of monetary stimulus “fairly soon” unless incoming data points to “substantial and sustainable” strengthening in the recovery.
By 0127 p.m. (0627 GMT), the broader Jakarta Composite Index was up 0.38 percent. (Reporting by Jakarta Bureau)