Wow... India kalah donk Manulife's Gin Says Indonesian Stocks May Rise 19% (Update1)
By Berni Moestafa and Haslinda Amin June 17 (Bloomberg) -- Indonesian stocks may climb another 19 percent this year if the country's president wins next month's election and oil prices extend their gains, PT Manulife Asset Management's Chief Investment Officer Raymond Gin said. The Jakarta Composite index may exceed 2,400 this year as President Susilo Bambang Yudhoyono is likely to win a second five-year term in one round, Gin, who manages about $1.9 billion in assets, said in an interview in Jakarta today. The index closed at 2,024.97 today. PT Bank Central Asia and PT Indofood Sukses Makmur are among his picks, he said. The benchmark index has risen 49 percent this year as legislative elections in April bolstered Yudhoyono's hold in parliament and added optimism he will boost economic growth. Presidential voting is scheduled for July, with a second round in September if needed. Oil futures rose 82 percent this year to $70.82 a barrel in New York. "If commodity prices were to trend even higher from here, which is our belief, that should provide the Jakarta Composite index with good legs," Manulife's Gin told Bloomberg TV in a separate interview today. Yudhoyono may win 63 percent of votes in the July 8 ballot, according to a survey of 4,000 respondents conducted from May 28 to June 3 by the Lingkaran Survei Indonesia. In a poll of 2,519 people by the Reform Institute, 63 percent said they'd vote for him and running mate Boediono, a former central bank governor. Indonesia's stock market has risen 71 percent since Yudhoyono took office on Oct. 20, 2004. He presided over reforms that led the economy to expand more than 6 percent in the past two years, the fastest since the 1997 Asian financial crisis.
