Coalition Keeps Index on Steady Uptrend  

TEMPO.CO, Jakarta – The Jakarta Composite Index (JCI) climbed to its highest level of the year along with investors' rising optimism on the dynamics of the presidential election. Analyst Christandhi Mihardja Reza from Sinarmas Sekuritas said the development of coalition over the presidential election remains a positive sentiment for the index.

Christandhi said the increasing certainty over the presidential candidates and their running mate has prompted investors to speculate on the future direction of the Indonesian government. "The development of the presidential bid has built positive expectations for market participants."

Ahead of the runners' registration, the presidential election discourse is becoming increasingly attractive. After receiving support from three political parties, the Joko Widodo-Jusuf Kalla pair is now also supported by the People's Conscience (Hanura) Party.

Meanwhile, Prabowo Subianto—who chose former economic minister Hatta Rajasa as his running mate—received additional support from the Prosperous Justice Party (PKS). These supports are building perception that next leader will have enough support from the House to govern effectively.

Today the index is predicted to move strong between 4,991 and 5,050. Banking and property stocks such as Bank BRI, Bank Mandiri, Wijaya Karya, and Pembangunan Perumahan, are still worth collecting as both sectors often correlate positively with the prospects of a new government.

PDAT | M. AZHAR