##{"id":51959,"date":"2006-07-10T16:05:29","date_gmt":"2006-07-10T06:05:29","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2006\/07\/10\/interest-rate-cuts-bode-well-for-some-indonesian-stocks\/"},"modified":"2017-01-24T04:46:02","modified_gmt":"2017-01-23T17:46:02","slug":"interest-rate-cuts-bode-well-for-some-indonesian-stocks","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2006\/07\/10\/interest-rate-cuts-bode-well-for-some-indonesian-stocks\/","title":{"rendered":"Interest Rate Cuts Bode Well For (Some) Indonesian Stocks"},"content":{"rendered":"<p class=\"MsoNormal\"><span><\/span><\/p>\n<p \/>\n<p class=\"MsoNormal\"><span><\/span><\/p>\n<p><span><font face=\"verdana,arial,helvetica,sans-serif\">By Terry Hughes<\/p>\n<p \/><\/font><\/span><\/p>\n<p class=\"MsoNormal\"><span><font face=\"verdana,arial,helvetica,sans-serif\">Buoyed by lower inflationary pressures and the Bank of Indonesia&#8217;s move to lower interest rates last week, analysts are looking for a period of solid performance from the Indonesian stock market. <\/font><\/span><\/p>\n<p class=\"MsoNormal\"><span><\/p>\n<p><font face=\"verdana,arial,helvetica,sans-serif\"><\/font><\/p>\n<p><\/span><\/p>\n<p class=\"MsoNormal\"><span><font face=\"verdana,arial,helvetica,sans-serif\">The Indonesian central bank began cutting rates back in May, by 0.25 basis points to 12.25%, and after a pause of a couple of months, due to turbulent market conditions, continued the process with a further 0.25 point cut last week. <\/font><\/span><\/p>\n<p class=\"MsoNormal\"><span><\/p>\n<p><font face=\"verdana,arial,helvetica,sans-serif\"><\/font><\/p>\n<p><\/span><\/p>\n<p class=\"MsoNormal\"><span><font face=\"verdana,arial,helvetica,sans-serif\">Local media reports cite Bank Permata investment manager Fendi Susiyanto as saying bank and property stocks are likely to benefit from the rate cut, while a strengthening rupiah could provide a windfall for telecommunication and cement stocks. <\/font><\/span><\/p>\n<p class=\"MsoNormal\"><span><\/p>\n<p><font face=\"verdana,arial,helvetica,sans-serif\"><\/font><\/p>\n<p><\/span><\/p>\n<p class=\"MsoNormal\"><span><font face=\"verdana,arial,helvetica,sans-serif\">Analysts at Credit Suisse are of the view that the Indonesian economy will recover in the second half of 2006, although they expect weak 2H06 results so are recommending investors &quot;accumulate blue chip stocks after the 2H06 results.&quot;<\/font><\/span><\/p>\n<p class=\"MsoNormal\"><span><\/p>\n<p><font face=\"verdana,arial,helvetica,sans-serif\"><\/font><\/p>\n<p><\/span><\/p>\n<p class=\"MsoNormal\"><span><font face=\"verdana,arial,helvetica,sans-serif\">They also feel the time is right to &quot;accumulate interest rate sensitive stocks,&quot; as they see room for rates to fall to around 10.75% this year, they recommend BCA, Danamon, BII, Astra International, Semen Gresik and Indocement.<\/p>\n<p \/><\/font><\/span><\/p>\n<p class=\"MsoNormal\" \/>\n","protected":false},"excerpt":{"rendered":"<p>The prospect in Indonesian interest rates falling to 10.75% this year is expected to bode well for the stock exchange, particularly banking and property stocks.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[58],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/51959"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=51959"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/51959\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=51959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=51959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=51959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}