> ----- Original Message ----- From: "Bagus Hananto" < > bagus.hana...@aaasecurities.com> > To: <all_equ...@aaasecurities.com> > Sent: Monday, July 13, 2009 9:19 AM > Subject: FW: (BN) Yudhoyono's Mandate 'Bodes Well' for Stocks, Mark > > > >> >> +--------------------------------------------------------------------------- >> ---+ >> >> Yudhoyono's Mandate 'Bodes Well' for Stocks, Mark Mobius Says >> 2009-07-13 01:10:26.351 GMT >> >> >> By Shiyin Chen >> July 13 (Bloomberg) -- Indonesian stocks, the fourth-best >> performers in the world this year, may get a further boost from >> any landslide election victory for President Susilo Bambang >> Yudhoyono, Templeton Asset Management Ltd.'s Mark Mobius said. >> Yudhoyono, shown by surveys to have overwhelming support >> for a second presidential term, has pledged to place economic >> prosperity at the top of his agenda while tackling corruption, >> Mobius said. The Southeast Asian nation's equities remain the >> "third- or fourth-cheapest" in the region, said Mobius, who >> helps oversee $20 billion as executive chairman of Templeton. >> "A strong mandate for President SBY bodes well for the >> market," Singapore-based Mobius said in an e-mailed response to >> Bloomberg questions, referring to the president by his initials. >> "This should lead to a lowering of Indonesia's risk premium, >> stronger growth and a more stable currency." >> Indonesia's Jakarta Composite Index has rallied 52 percent >> this year, lagging behind only benchmark gauges in Peru, China >> and Sri Lanka among the 88 tracked by Bloomberg globally.* The >> measure is valued at 13 times estimated earnings, compared with >> 23 times for the MSCI Asia-Pacific Index.* >> Yudhoyono won 61 percent of votes in the election, >> according to a sampling of nationwide ballots by the Indonesian >> Survey Institute, which correctly predicted previous contests. >> His share was 62 percent in a count of almost 19 million votes >> by the General Election Commission. The official tally won't be >> available for at least 17 days, according to the commission. >> The president has pledged to boost spending to help achieve >> 7 percent annual economic growth for Indonesia, which has >> avoided the recessions that plagued its neighbors. The $433 >> billion economy grew 4.4 percent in the first quarter from a >> year earlier and may expand as much as 4 percent this year, >> according to estimates by the International Monetary Fund. >> >> 'Critical Target' >> >> "The target of at least 7 percent is a critical target if >> the country is to move ahead dramatically," Mobius said. >> A stock-market rally before the elections prompted >> investors such as Kenny Soejatman, director of equity investment >> at Jakarta-based PT Mandiri Manajemen Investasi, to say gains >> are excessive. The Jakarta Composite was little changed on July >> 9, the day after polls were cast, and fell 1 percent the next >> day, along with declines in global equities. >> "Stock prices may have rallied too early in anticipation" >> of Yudhoyono's victory, Soejatman said on July 8. "The >> likelihood of a further rally may be limited but the likelihood >> of a correction is still there." Mandiri Manajemen Investasi >> manages the equivalent of $976 million in assets. >> >> Tackling Corruption >> >> The market may face "volatility" as investors await the >> final results of the presidential elections, the appointment of >> a Cabinet, and as the president sets his agenda for the next >> five years, Mobius said. >> Among the challenges that Yudhoyono faces in his second >> term will be to tackle corruption and improve investor >> confidence in the nation's legal and political systems, Mobius >> said. Already, the president has offered better credit lines, >> reduced bureaucracy and improved labor laws in a bid to attract >> foreign investment, he added. >> "The need to eliminate corruption from the top down should >> be priority number one," Mobius said. "He's got the right >> ideas." >> >> For Related News and Information: >> Top news: TOP <GO> >> Most-read Indonesian news: MNI INDO <GO> >> News on Indonesia's elections: TNI INDO ELECT <GO> >> Emerging market monitor: EMMV <GO> >> Indonesia's economic statistics: ESNP ID <GO> >> Developing nations' economic statistics: STAT4 <GO> >> >> --Editors: Reinie Booysen, Tony Jordan >> >> To contact the reporter on this story: >> Shiyin Chen in Singapore at +65-6212-1170 or >> sche...@bloomberg.net >> >> To contact the editor responsible for this story: >> Linus Chua at +65-6212-1530 or >> lc...@bloomberg.net >> >> >> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ >> ~~~ Message has scanned by AAAS Mail Security Gateway ~~~ >> ~~~ No virus found in this incoming message ~~~ >> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ >> >> >> > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ > ~~~ Message has scanned by AAAS Mail Security Gateway ~~~ > ~~~ No virus found in this incoming message ~~~ > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ > >
