JAKARTA (TheInsiderStories) - Indonesian shares are expected to be lower, extending falls in the past few days trading, driven by sharp falls in Wall Street overnight, triggered by a decline of oil price, analysts say.
On Tuesday, the Jakarta Composite Index (JCI) closed lower by 66 points or 1.66 percent to 5,215 points, showing that the composite index is still in bearish trend in short-to-medium term.
Mandiri Sekuritas sees the JCI to trade above next support level of 3,170 points and resistance level of 5,281 points. It expects the indx to extend yesterday’s declining.
Overnight, DJIA plunged by 1.41 percent, S&P500 dropped 1.48 percent and Nasdaq lost 1.09 percent. In Europe, FTSE fell 0.53 percent, DAX in Germany fell 0.43 percent and CAC in France fell 1.19 percent. In Asia, Nikkei closed up 0.34 percent, Hang Seng edged down 0.32 percent and SSE in Shanghai lost 0.05 percent.
Asjaya Indosurya Head of Research William Surya Wijaya said in morning notes to investors that the JCI has good chance to rebound following recent days falls.
He expects the JCI to move within range of 5,206 support level and 5,337 resistance level.
“The JCI is still under selling pressure due to the absence of positive sentiment,” he said, adding that the fall is considered as a healthy correction which could be used by some market players to make selective buying.
Today’s menu (Asjaya Indosurya):
- WTON
- HMSP
- JSMR
- TLKM
- PGAS
- TBIG
- UNVR
- EXCL
- BBNI
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