IDX Director Samsul Hidayat

JAKARTA (TheInsiderStories)—Jakarta Composite Index (JCI) and rupiah are closed lower in the last trading before one-week Eid Fitr holiday.

JCI closed at 5,993.63, down 1.85 per cent or 113.07 points, while rupiah weakened 57 points or 0.41 per cent at 13,932 per US$1 today (08/06). Yesterday, JCI has closed up 0.61 per cent or 36.98 points at 6,106.70.

JCI moved at level 6,051.49-6,096.66 in today’s trading. A total of 111 stocks rose, while 214 shares fell, and 259 shares were unchanged today. Foreign investors net sold stocks worth Rp2.45 trillion.

JCI is the worst stock compared to other Asian stock exchanges. The Nikkei Index was down 0.56 per cent, Hang Seng Index down 1.76%, Kospi index down 0.77%, SET fell 0.49%, the KLCI index fell 0.2%, the Strait Times index down 1.02%, and the Shanghai index down 1.36%.

The weakening of JCI and rupiah against US Dollar are influenced by external and internal sentiments. Domestically, investors are cashing in on their stocks holding ahead of the long holiday.

In addition, retail sales that recorded low in April 2018 pushed the JCI and rupiah lower. Bank Indonesia said retail sales grew only 4.1 per cent in April 2018 (year on year) versus 2.5 per cent in March 2018 due to Ramadan and Eid Fitr. However, this record is considered as low compared to the April 2017 that reached 4.2 per cent (year on year), reflecting the low people’s purchasing power.

In the external factors, the JCI weakening related to the decline in various indexes in Asia, responding uncertainty in the G7 meeting in Ottawa with major economies are in the bring of a trade war after the US slapped duties of steel imports from the European Union and Canada. Canadian and European leaders are considering measures to retaliate the US import duties.

US President Donald Trump expressed his frustration via his Twitter account over Canadian and French trade policies. “Please tell Prime Minister Trudeau and President Macron that they are charging the U.S. massive tariffs and create non-monetary barriers. The EU trade surplus with the U.S. is $151 Billion, and Canada keeps our farmers and others out. Look forward to seeing them tomorrow,” he posted in his official Twitter account.

Email: fauzulmuna@theinsiderstories.com

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