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Indonesian stocks reach pre-pandemic high as holidays approach
Foreign investors at the local bourse recorded a net sell of Rp 47.05 trillion (US$3.34 billion) so far this year.
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The Indonesia Stock Exchange (IDX) logo is pictured at the bourse's building in Jakarta on March 13, 2020. (JP/Seto Wardhana)
I
ndonesian stocks will continue their northward rally next week and inch back to the pre-pandemic record high amid positive sentiment stemming from vaccine roll-outs and United States lawmakers’ efforts to reach a deal on a new stimulus package.
Despite slightly weakening by 0.15 percent to 6,104.32 on Friday, the Jakarta Composite Index (JCI) had been hovering around 6,100 since Wednesday, a level unseen since Jan. 29 when the country had reported zero COVID-19 cases, supported by vaccine news and window dressing measures. However, the index still recorded a 3.1 percent loss throughout the year from the impact of the global market rout at the start of the pandemic in March and April.
“We project the JCI to be well on its way to reach 6,250 to 6,300 anytime soon,” Henan Putihrai Sekuritas analyst Liza Camelia told The Jakarta Post via text message on Friday. The index’s highest level this year was 6,325 recorded in mid-January.
“However, expect some resistance around the 6,130 to 6,150 levels, which could cause the JCI to go back to its psychological support level of 6,000,” she added.
Read also: JCI to continue bullish trend until Q1 2021: Analysts
The JCI took a hit and crashed as low as 3,900 earlier this year as investors dumped risky assets over fears of the coronavirus outbreak, which disrupts business activity and paralyzes companies around the world. Foreign investors at the local bourse recorded a net sell of Rp 47.05 trillion (US$3.34 billion) so far this year as they sold Rp 2.68 trillion worth of stocks more than they bought on Friday.
Stocks of privately owned Bank Central Asia (BCA) and state-owned Bank Mandiri and Bank Rakyat Indonesia (BRI) were the top three laggards on Friday while consumer goods giant PT Unilever Indonesia, telecommunications provider PT Indosat and state-owned miner PT Aneka Tambang recorded the highest gains.
