MORGAN STANLEY : IHSG NAIK KLAS

Jan 29, 2014. Bloomberg.Com Indonesian stocks rose the most in two weeks, leading gains in emerging markets, as Morgan Stanley upgraded the country’s shares and Turkey’s interest-rate increase stemmed a rout in developing-nation currencies. The rupiah strengthened while government bond yields fell.

The Jakarta Composite Index (JCI)climbed 1.7 percent to close at 4,417.35, its steepest advance since Jan. 13. The rupiah appreciated 0.2 percent to 12,166 per dollar, prices from local banks show. The government’s 8.375 percent bonds due March 2024 rallied for a second day, sending yields down 15 basis points to 8.83 percent, according to the Inter Dealer Market Association.

Morgan Stanley raised its recommendation to equalweight from underweight on Indonesian shares, citing an improvement in the country’s trade balance and cheaper valuations, according to a report dated yesterday. The Jakarta index will probably rally as much as 20 percent by year-end, said PT Manulife Asset Management Indonesia, the nation’s second-largest money manager. Emerging-market stocks and currencies advanced today after Turkey more than doubled its benchmark interest rate to defend the lira and curb capital outflows.

“We have observed positive signs along multiple fronts in Indonesia, including an improvement in the trade balance, further currency adjustment, an appropriate monetary policy response to the increase in the global risk-free rate and on the ground infrastructure delivery in Jakarta,” Yang Bai, an analyst at Morgan Stanley, wrote in the report.