The Composite index of the Indonesia Stock Exchange (IDX) gained 0.18% to close at 5,400 on Friday last week, but closed off its high as profit taking hit certain stocks. Foreign investors booked net buy of Rp886.1 billion. Year to date, foreign’s net buy reached Rp7.44 trillion with IDX year-to-date gain at 3.3%. BI Rate cut was the main factor boosting the buying in local stocks last week. The central bank, Bank Indonesia (BI), had on Tuesday (Feb 17) lowered its benchmark BI Rate by 25 basis points to 7.50%. BI is convinced that inflation will remain under control at the lower end of the 4±1% range in 2015 and 2016.

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