Indonesian Stock Index May Rise 20%, BNP Paribas Says
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Indonesia’s benchmark stock index may rise 20 percent within a year on an expected upgrade of the nation’s sovereign debt rating to investment grade, according to BNP Paribas.
A re-rating of Indonesia’s debt will have “far-reaching implications in interest-rate structure, currency, investments and, ultimately, asset prices and valuations,” analyst Elvira Tjandrawinata wrote in a report today, rating Indonesian shares “overweight.” BNP set a 12-month target of 4,500 for the Jakarta Composite index, with recommendations including PT Astra International and PT Bank Mandiri.