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JCI declines due to profit taking
The Jakarta Composite Index (JCI) was down at Fridayâs close
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he Jakarta Composite Index (JCI)was down at Friday's close. The stock benchmark index dropped 1.1 percent, or47.07 points, to 4,207.79 as investors chose to take their profits from theJCI's three days of gain.
There were 99 stocks that rose on Friday, 165 stocks that declined and 78 stocks unchanged in the closing session. All of the sectoral indices were down, led by miscellaneous industry and the manufacturing sector, falling 2.43 percent and 1.91 percent respectively.
Friday's trading volume reached 5.42 billion shares, with a total trade value of Rp 4.25 trillion (US$292 million). Nevertheless, the rupiah strengthened by 0.31 percent to Rp 14,646 per US dollar.
Meanwhile, the regional equities market saw mixed movements. Japan's Nikkei225 Index rose slightly 0.02 percent and the Hong Kong Hang Seng Index surged 3.17 percent. In contrast, South Korea's Kospi Index reduced by 0.49 percent.
"The varied growing sentiments in the market tended to bring the JCI down, as investors decided to take their profits," said head of research at Valbury Asia Securities, Alfiansyah.
Negative external sentiment came from the International Monetary Fund (IMF), which predicted the 2016 economy would remain slow, especially in developing countries.
Internal sentiment was shaped by the release of a second economic package, expected to stabilize the rupiah.
An analyst at Mandiri Sekuritas, Hadiyansyah, argued that the market was indeed moving slowly. In this situation, conservative traders and the long-term oriented investors may use the opportunity to accumulate shares.
"As for short-term investors, we suggest they ['¦] trade with discipline, staying alert to risk," he said. (ags/bbn)
