Indonesia’s benchmark stock index was on track for a fresh record on Tuesday, thanks to strong gains in energy and commodity prices.
(Bloomberg) — Indonesia’s benchmark stock index was on track for a fresh record on Tuesday, thanks to strong gains in energy and commodity prices.
The Jakarta Composite Index rose as much as 0.8% to 7286.8 points, set to surpass the previous record set in April. Energy and industrials sub-gauges were the best performers.
Shares of Indonesia’s raw-material firms have climbed on the back of a global shortage of commodities as supply struggles to keep pace with demand amid the reopening of economies.
“Commodity and energy stocks with good financial reports, especially coal, are expected to continue to book higher profits and dividend distributions are certainly attractive,” said Panin Asset Management Director Rudiyanto. “But some commodity prices have begun to fall and high price increases have made investors more cautious.”
Sentiment has also been bolstered by the nation’s annual budget unveiled last month, which includes plans to shrink the budget deficit and return growth to pre-pandemic levels.
READ: More Winners Than Losers From Indonesia’s $206 Billion Budget
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