Investors See Positive Election Result

VIVAnews - The 2009 legislative election result which resulted in the Democratic Party as the winner apparently is well appreciated by the market players.

The economist head of Mandiri Sekuritas Destry Damayanti said that the Democratic Party's win of 20.6 percent was responded fast by the market players. They bought national stock, currency and obligation.

It resulted in the rising of the currency and stock price index. Rupiah has been gaining 10 percent since last February. The stock market directly gained also 10 percent since February 2009.

Foreign investors also took government's stocks and obligations. In April, stock foreign acquisition reached Rp 1.3 trillion (US$121.88 million) of net profit along with government obligations which earned Rp 2 trillion (US$187.52 million) of foreign acquisition.  

She reminded that in time of crisis market players expect a fix and consistent policy. Another important issue is that the general elections momentum hit the right moment when emerging market risk lessened. At the same time, the world signaled that the foreign investor risk perception had also decreased, therefore the capital flow ran back in.

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Translated by: Ariyantri E. Tarman