FX.co ★ Indonesian Equities Extend Strength

Indonesian stocks rose 63 points, or 1.0%, to 6,463 in early Tuesday trading, extending gains from the previous session as markets reopened after Monday’s holiday. Sentiment was supported by optimism that economic output will remain resilient next year, underpinned by stronger fiscal conditions, reforms in energy security, and greater capital-market transparency.

Attention is focused on the central bank’s policy meeting that begins today, the first since Perry Warjiyo stepped down last month. Hopes for policy continuity have grown under acting Governor Destry Damayanti, who is the sole nominee to permanently lead Bank Indonesia.

Upside was capped, however, by weaker U.S. equity futures after overnight losses on Wall Street and a rise in oil prices as the United States and Iran appeared no closer to reaching a deal. Even so, most sectors advanced, led by energy, basic materials, non-cyclical stocks, and industrials.

Early notable gainers included Indika Energy (+5.1%), Japfa Comfeed (+4.7%), Bumi Resources (+2.2%), and United Tractors (+2.0%).