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JCI strengthens by 8.72 points
The Jakarta Composite Index (JCI) opened at 4,887
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T
he Jakarta Composite Index (JCI) opened at 4,887.36, up by 8.72 points or 0.18 percent, during Monday's first trading session, as a majority of Asian stock markets were corrected.
Meanwhile, the index of LQ45, which represents lists of 45 stocks with the most liquidity, strengthened by 2.26 points (0.27 percent) to 832.93.
'The JCI had strengthened at the beginning of this week's trading session but it tended to be limited as sentiments in the Asian stock markets tended to be less supportive,' said Trust Securities head of research Reza Priyambada in Jakarta on Monday as quoted by Antara news agency.
He said if external conditions were benefited from by market players in terms of profit taking, the JCI would be corrected and the political euphoria that supported the index over the weekend would be short term.
'Although there's hope the JCI will strengthen further, the strengthening that occurred significantly over the weekend will make it prone to profit taking,' Reza said.
The analyst added market players needed to stay vigilant. In carrying out stock accumulations, they had to pay close attention to fundamental performances and the valuations of publicly listed companies.
Valbury Asia Securities head of research Alfiansyah said the JCI movement during this week would be influenced by both domestic and foreign factors.
'It is predicted that external sentiment will be more dominant than domestic sentiment. However, internal sentiment could possibly reduce pressure from external factors,' he said.
Alfiansyah said the government and Bank Indonesia (BI) were optimistic Indonesia would push down the country's current account deficit although leading global rating agency Fitch Ratings predicted Indonesia's current account deficit this year would stand at 3.1 percent.
'The Indonesian government is committed to pushing down this year's current account deficit by 2.5 percent of the gross domestic product [GDP], concerning several Indonesian economic indicators that have shown some improvement and stability, such as the inflation rate, the balance of trade, economic growth and the capital market indicator,' he said.
In regional markets, the Hang Seng Index weakened by 36.11 points (0.17 percent) to 21,503.38; the Nikkei Index was down by 29.14 points (0.20 percent) to 14,299.68 and the Straits Times Index rose by 1.98 points (0.07 percent) to 3,076.40. (ebf)
