JAKARTA (TheInsiderStories) - Indonesian shares are expected to move flat today as some investors are concerned with the possible hike of US interest rate.
On Tuesday, the JCI closed at 5,340.99 or weakened 0.34% against the previous day’s close (+ 0.89% mtd; + 0.84% ytd). A total of 120 stocks rose, 213 stocks declined, 100 stocks unchanged and 145 shares not experience trading.
Foreign selling in auto stocks as well as profit-taking in shares of mining caused the JCI to end the day in the red zone and leaving only the plantation sector in the green zone. Foreign investors were recorded as net sellers valued at Rp146.6 billion.
The rupiah was trading at Rp13,347 per USD, gained 0.17% against the previous close (-0.04% mtd; -0.94% ytd).
Mirae Asset Indonesia Securities analyst Tasrul expects the JCI to move within tight range of 5,326-5,373 on Wednesday (22/2), while NH Korindo Securities analyst Bima Setiaji sees opportunities for the JCI to strengthen, hovering between support level of 5,327 and resistance level at 5,390.
Tasrul said political uncertainty in Europe and the possible increase in US interest by the Fed has lifted the US dollar, putting downward pressure in other markets, including Indonesia. (*)