The Insider Stories Morning Notes – JCI expected to be mixed ahead of weekend, concerns on explosions

JAKARTA (TheInsiderStories) – Indonesian shares are expected to trade mixed today, with gains in selected stocks are likely to be offset by moves of some players to cash out ahead of the weekend as well as concerns on suicide bombs that hit a bus terminal on Wednesday night, analysts say.

On Wednesday, the Jakarta Composite Index (JCI) closed lower 27.18 points or down 0.47 percent to 5,703 points, after moving within range of 5,672-5,704 points. The market closed yesterday for public holiday.

Foreign investors were in net sell positions of Rp132.34 billion. As many as 8 industry indices declined and only two ended in positive zone.  As many as 130 stocks increased, 199 declined and 114 stocks were unchanged.

The total transaction value reached Rp6.3 trillion.

Most Asian stocks ended higher today, with Nikkei 225 rose 0.66 percent, Kospi rose 0.24 percent and Hang Seng in Hong Kong edged up 0.1 percent.

William Surya Wijaya, vice president of research department of Indosurya Mandiri Sekuritas said the JCI is likely to test the support level of 5,646 points today. If the support level is strong, there is a good chance for shares to go up, providing opportunities for market players to accumulate stocks.

He projected the JCI index to move within range of 5,46-5,797 points today. He said the market could be under selling pressure in the short-term, but in medium-long term timeframe, the JCI still shows an upward trend.

“For today, the JCI has the potentiality to go up,” he said.

Followings are stocks to watch, according to Indosurya, namely PWON, ICBP, KLBF, HMSP, TLKM, ASRI, BBCA, PGAS and MAIN. (*)