JAKARTA (TheInsiderStories) - Good morning, the Composite Stock Price Index (JCI) is predicted rebound today after fell 0.12% to 5,309.92 on Tuesday, said NH Korindo Securities’s analyst, Bima Setiaji. The positive sentiment, He added, come from Indonesia’s foreign exchange reserves position in December rose to US$116 billion from previous month $115 billion.
He predicts JCI will move in the support level at 5,291 and resistance 5,325. Yesterday, Bima explained, JCI fell due to the crude oil prices fell more than 2% on concerns over rising oil exports from Iraq and was followed by a further weakening of coal prices.
Yesterday, JCI closed corrected simultaneously with a reduction in European stock markets. The index is down -6 points (-0.12%) to 5,309 after moving between 5,292-5,331. A total of 128 stocks rose, 174 stocks down, 110 stocks did not move, and 166 shares not traded.
As many as six out of a total of 10 sectors fell, led by the trade in the sector were down -0.86% and -0.62% down mines. The investors transaction recorded Rp4.78 trillion, consisting of regular transactions Rp3.9 trillion, negotiations Rp879.28 billion and Rp11 million in cash. On the regular market, foreign investors recorded a net sales Rp158.11 billion.
From Asia, the majority of stock indices were mixed. Nikkei225 index in Japan fell -0.79% and South Korea’s Kospi fell -0.18%, while the Hang Seng in Hong Kong has appreciated + 0.83%.
The majority of European stock markets weakened since it opened this afternoon. Germany’s DAX index fell -0.08% and the CAC in France fell -0.11%, while the FTSE100 in the UK rose + 0.18%.
In the foreign exchange market, Rupiah strengthened +54 points (+ 0.4%) to Rp13,308 per US dollar, after moving in the range Rp13,267-Rp13,337. Reny Eka Putri, money market analyst at PT Bank Mandiri Tbk said, in the beginning of the week the US dollar had gained quite high due to the expectations to plan of the Fed’s to hike the interest rate.
The market, She said, was exploiting loopholes for profit-taking. This action is beneficial rupiah and a majority of other emerging market currencies, said Reny. In addition, the labor market index in the US in December 2016 released slipped from 2.1 to minus 0.3.
This is in line with the performance of the US labor sector at the end of 2016 and sluggish. It becomes extra sentiment for the US dollar corrected. Reny forecast a strengthening rupiah will be temporary due to the weekend already minimal domestic economic data. So that the rupiah will be dominated by external catalysts.