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Brexit effect on JCI moderates in closing session
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An employee walks past the trading panel at the Indonesia Stock Exchange (IDX) in Jakarta on March 28. (ANTARA FOTO/Sigid Kurniawan)
S
eeing the bourse index squeezed by 2.3 percent in the first session, Indonesian stock traders have recovered fast to absorb the Brexit shock. However, money traders didn’t make the same efforts, leaving the rupiah significantly weakened.
At the closing session on Friday afternoon, the Jakarta Composite Index (JCI) ended at 4,834.56, a 0.82 percent decline following the fast recovery in Chinese markets. Meanwhile, the rupiah weakened by 1.07 percent to 13,248 per US dollar.
Indonesia Stock Exchange (IDX) president director Tito Sulistio said the shock to the stock market had not endured, as the Indonesian economy was fairly stable, with macroeconomic indicators such as inflation and foreign reserves remaining positive.
"This is just a temporary shock. The foreign brokers have sold too much, and they know it […] As you can see, the correction has been milder in the second session compared with the 2 percent drop in the morning," he told The Jakarta Post in Jakarta on Friday .
Foreign investors collected more stocks in the second trading session and recorded net sales of Rp 587.79 billion (US$43.86 million) on Friday. Fifty-seven blue chips of 528 stocks on the bourse climbed, 235 stocks declined and the remaining 238 were unchanged.
"Actually we are not as bad as the commonwealth countries such as Australia whose stock indexes and currencies are down by more than three percent; it’s just the US dollar that is now bullish everywhere," said Bank Central Asia Economist David Ernest Sumual. (ags)
