Jakarta (ANTARA News) - The government through PT Jamsostek has bought shares in a large quantity at the Indonesia Stock Exchange (BEI) causing the BEI composite index to rise, a market observer said.
Ifan Kurniawan, the observer, said here on Wednesday the government had been closely monitoring the BEI conditions that have been depressed as a result of the global crisis that was also sweeping the region`s markets.
Ifan who is also an analyst of PT First Asia Capital said the government bought the shares following an improvement in the New York Exchange where the Dow Jones index rose four percent while the Standard and Poor`s five percent.
"It is however still uncertain when the BEI index will rise to 4,000 again," he said.
The government, he said, has prepared funds to anticipate possible withdrawal of foreign capital from the domestic market.
"The effort shows that the government is very serious towards the situation at the BEI whose index has dropped from 4,200 to 3,600," he said.
He said foreign and local market players have not yet started buying shares in large numbers as they are still worried over the return of the global crisis.
The BEI index is at present recorded at 3,800 and in case no negative surprises from the global markets emerge the uptrend may continue, he said.
He said foreign investors tended to buy blue chips after they have been corrected in three straight days such as Astra Internasional, bank and mining shares.
Investors buy second-tier shares only selectively although the shares have also been impacted by the global crisis, he said.
Astra Internasional shares were sold at a volume of 2.43 million units worth Rp184.20 billion based the latest rate of Rp67,.250 rising Rp3,150 while United Tractor rose Rp1,050 to Rp24,250 per share.
The most traded shares meanwhile were Bank BRI which were sold up to 24.27 million units worth Rp160.15 billion with a rate hike of R250 to Rp6,550 per share.
