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JCI up against global trend, as oil price rises
(thejakartapost
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(thejakartapost.com/Wienda Parwitasari) (thejakartapost.com/Wienda Parwitasari)
(thejakartapost.com/Wienda Parwitasari)
The Jakarta Composite Index (JCI) moved up 0.5 percent, or 23 points, to 4,568.44 as of 10 a.m. in Wednesday's first trading session, in contrast to the global equities markets that mostly declined in response to the Russia-Turkey incident.
All 10 sectoral indexes in Indonesia headed north, led by the basic industrial index, which rose 1.1 percent, the mining sector index, up 0.79 percent, and the miscellaneous industrial index, up 0.74 percent.
An analyst at First Asia Capital David Nathanael has predicted that investors will resist their buying urges today, amid a lack of positive sentiment and rising market risk after Turkey downed a Russian warplane in in Syria.
"The incident has led to a depreciation in Russia's rubbel and Turkey's lira, in turn affecting other emerging market currencies including the rupiah," said David on Wednesday in Jakarta.
The JCI, he predicted, would fluctuate but could still see a limited rally, as it had been continuing its consolidating trend since yesterday. He predicted the stock market benchmark would hover at the support level of 4,525 to 4,500 and then test its resistance level of 4,590 to 4,620.
Responding to escalating conflict between Russia and Turkey, a NATO member, oil rebounded 2.7 percent to US$42.89 per barrel. Indonesia, widely-known as a commodity exporter, saw a bonanza when palm-oil and coal prices rose in early 2010 due to high oil prices.
The Asian stock market responded to the Russia-Turkey incident negatively. The MSCI Asia Pacific Index dropped 0.2 percent, Japan's Nikkei Index was slashed 0.7 percent, Australia's S&P/ASX 200 Index declined 0.3 percent, while South Korea's Kospi fluctuated wildly. (ags)(+)
