JAKARTA (TheInsiderStories) - Samuel Sekuritas Indonesia predicted the Jakarta Composite Index (JCI) in trading on Wednesday (01/25/2017) is likely to strengthen driven by a number of positive sentiment. The research team said, after Trump signed two executive policy concerning the development of the Keystone XL pipeline and Dakota Access responded positively by the market.
This time investors seem to be more optimistic about the clarity of the economic policies of President Donald Trump. Meanwhile, European markets closed higher rally boosted commodity prices.
Commodity prices will rebound to respond the increased demand in the US, Europe and China. Crude oil prices rose monitored bolstered by the weakening US dollar and production cuts by OPEC. Meanwhile, the majority of APAC exchanges opened higher.
Yesterday, JCI closed higher as rising European stock markets today. The index rose +0.78 points (+ 41%) to 5,292 after moving between 5,267-5,297. A total of 178 stocks rose, 140 stocks down, 102 stocks did not move, and 152 shares not traded.
Today, investors transact Rp6.66 trillion, consisting of regular transactions Rp5.04 trillion, negotiations Rp1.62 trillion and Rp2 million cash. On the regular market, foreign investors recorded a net sales (net sell) Rp127.13 billion.
As many as nine out of a total of 10 sectors rose, led by the trade sector which rose + 1.42% and infrastructure are up + 1.4%.
From Asia, the majority of stock indices were mixed. Nikkei225 index in Japan fell -0.05% and South Korea’s Kospi fell 0.01%, while the Hang Seng in Hong Kong has appreciated + 0.22%.
This afternoon, the majority of stock indices in Europe has strengthened since it opened this afternoon. FTSE100 index in Britain rose + 0.05%, the DAX in Germany gained + 0.15%, and the CAC in France has appreciated + 0.1%.
In the foreign exchange market, Rupiah strengthened +47 points (+ 0.35%) to Rp13.322 per US dollar, after moving in the range Rp13.290-Rp13.353. Samuel Sekuritas Indonesia sees a strengthening of the rupiah likely stuck today,
The economist Rangga Cipta, said US dollar index had dropped sharply in the past week began to rise in overnight trading, helped by US manufacturing index which rose sharply. The increase was sharper than the increase in euro zone manufacturing index. This indicates the performance of the US economy is still relatively more solid.
Plus, uncertainty about economic policy to be taken Trump is still high so a weaker dollar sentiment will not be too intensive. Meanwhile, the strengthened Rupiah on Tuesday along with strengthening of the government bond and the sharp rise in JCI.
Visible dollar is still weak against the majority of the exchange rate in Asia despite a strengthening dollar today could come back again.
“The government saw the potential risks of policy Trump and opportunities of rising inflation, is planning to change the macro assumptions in 2017 that the state budget is expected to affect the expectations of the budget deficit in 2017 is currently assumed to be 2.41% of GDP. The strengthening of the rupiah likely stuck on this day, “he said in a research.