Dec. 16 (Bloomberg) -- Indonesia’s stock index may climb 32 percent next year after outperforming measures in Asia’s biggest markets in 2009 as companies raise debt to expand amid a pickup in economic growth, according to Credit Suisse Group AG.
The Jakarta Composite Index is set to rise to 3,300 by the end of 2010, led by consumer, infrastructure and resource stocks, said Arief Wana, director of equity research at PT Credit Suisse Securities Indonesia, the local unit of the Swiss bank. The measure fell 0.5 percent yesterday to 2,494.74.
The stock index has risen 84 percent this year, beating the region’s 10 biggest stock markets, as domestic spending helped boost Southeast Asia’s biggest economy. Companies are expanding on signs demand will improve as growth accelerates, with the central bank forecasting that the economy will grow 5.5 percent in 2010 from an estimated 4.3 percent this year.
“We’re bullish on Indonesia,” Wana said in an interview yesterday. “As we believe that Indonesia is entering into a higher growth phase, the companies’ current much stronger balance sheet should be able to sustain a high rate of return- on-equity.”For detail story, visit here
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