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JCI slightly higher at opening
The Jakarta Composite Index (JCI) opened slightly higher on Monday, shadowed by stock markets in the Asian region, which did not move in tandem
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he Jakarta Composite Index (JCI) opened slightly higher on Monday, shadowed by stock markets in the Asian region, which did not move in tandem.
The JCI was up by 0.80 points or 0.01 percent to 4,447.00 while the LQ45 index of the 45 most liquid stocks strengthened by 0.20 points (0.03 percent) to 757.27.
Universal Broker Indonesia head of research Satrio Utomo said the JCI had strengthened amid movements of stock markets in the Asian region, which varied.
'The statement of US Federal Reserve vice chair Stanley Fischer who was still optimistic about inflation and would continue the Fed's plan to increase its fund rate in September had led several stock markets in the Asian region to experience corrections. This situation could threaten the JCI's upward trend in the short term,' said the analyst as quoted by Antara in Jakarta on Monday.
Satrio said that although the Indonesian government was planning to announce an economic policy package as a response of the current global crisis, sentiments caused by the JCI's movement tended to be triggered more by the global market movement ahead of the announcement of the Fed fund rate.
'The Fed is scheduled to hold a Federal Open Market Committee [FOMC] meeting on Sept. 16-17. It is predicted that the JCI movement ahead of the meeting will change quickly. Investors are expected to stay vigilant against fund rate-related steps the Fed will take,' said the analyst.
Meanwhile, Mandiri Sekuritas technical analyst Fath Aliansyah Budiman said in the next several days, the JCI would be prone to corrections.
'For today's trading sessions, we can pay attention to publicly listed companies in mining and agro-business sectors because the West Texas Intermediate [WTI] oil price has increased by around 6.34 percent,' he said.
In regional markets, the Hang Seng Index weakened by 41.99 points (0.19 percent ) to 21,570.40; the Nikkei Index was down by 178.18 points (0.93 percent) to 18,958.14 and the Straits Times weakened by 2.31 points (0.12 percent) to 2,952.02. (ebf)
