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View all search resultsJCI, rupiah opens the week with correction
A man passes by stock trading panels in Indonesia Stock Exchange on Tuesday, Dec
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A man passes by stock trading panels in Indonesia Stock Exchange on Tuesday, Dec. 8"(thejakartapost.com/Wienda Parwitasari) (thejakartapost.com/Wienda Parwitasari)
A man passes by stock trading panels in Indonesia Stock Exchange on Tuesday, Dec. 8" (thejakartapost.com/Wienda Parwitasari)
Opening the week, the Jakarta Composite Index (JCI) moved into the red zone on Monday morning, farther from the psychological level of 4,400, while the rupiah approached the 14,100-per-US-dollar level.
The stock market benchmark was 32.63 points lower at opening, bringing it to 4,360.89, and it decreased by a further 1 percent (43 points) to 4,350.48 by 10 a.m.
An analyst at Reliance Securities, Lanjar Nafi, said that this week would be a bad time for the JCI, as the negative effect of the US Federal Reserve's interest rate level was predicted to overshadow the market.
"Therefore, investors are tending to refrain [from entering the market]. Technically, the JCI will break out of its support level, as the Bollinger Bands and stochastic indicators showed a bearish trend closer to the oversold area," he said as quoted by Kontan.
The US Federal Open Meeting Committee (FOMC), which has been predicted will decide the US benchmark interest rate, was scheduled to meet on Dec. 15 and 16.
Indonesia Stock Exchange (IDX) data showed that there were only 30 stocks traded in the green zone, while another 31 remained unchanged. At the opposite end, 163 stocks were in the red zone.
The value of transactions reached Rp 626 billion, involving 536.8 million lots of shares. Foreign investors recorded a net sell of Rp 54.1 billion.
Meanwhile, the rupiah was traded at 14,071 per US dollar in the money market as of 8:50 a.m., after touching Rp 14,109 at 8:25 a.m.
A researcher and analyst at BNI's treasury division, Trian Fatria, said that the rupiah's weakening was mainly related to the market expectation that the US Federal Reserve would increase the Fed Fund Rate in December.
On the other hand, demand for the US dollar in the local market has peaked as corporations needed them to pay for their global bonds at the end of the year. Thus, the rupiah would stay in the negative area, Trian projected. (ags)(+)
