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Indonesia Stocks Set to Gain 20% on Election Lift, Manulife Says

Indonesia’s benchmark stock index will probably rally as much as 20 percent by year-end as a weak rupiah boosts export earnings, while election spending supports consumer and media companies, according to the nation’s second-largest money manager.

Yields on the country’s 10-year government bonds will probably drop to 7.5 percent by December from about 9 percent, Alvin Pattisahusiwa, who oversees about $3.3 billion as chief investment officer of PT Manulife Asset Management Indonesia, said in a phone interview today. The nation’s rupiah bonds are the developing world’s worst performers in the past three months, while the benchmark Jakarta Composite Index has dropped 5.4 percent.