JAKARTA (TheInsiderStories) - The Indonesian market has to potentiality to go up today, but the upside potential is limited as some market players may opt to cash out, while waiting for the results of FOMC and Bank Indonesia board meeting this week.
On Tuesday, the Jakarta Composite Index (JCI) closed lower 27.750 points, or down 0.57 percent, at 4,849.224 points, while LQ45 ended lower 6.443 points or down 0.76 percent, at 845.697. The market opened higher, but then reversed the trend to end the trading in red zone.
As much as 128 stocks gained, 178 declined, with 104 stocks were unchanged. The total transaction value reached Rp5.13 trillion.
Almost all sectors weakened, except financial stocks, which ended higher 0.03 percent. The largest fall was recorded by mining stocks, followed by infrastructures.
Reza Priyambada, Head of Research NH Korindo Securities Indonesia, said in its morning report said market players appear to look to sell off some sectors stocks which have become index movers in the past few weeks.
The news of trade surplus of US$1.4 billion recorded in February seemed to have limited impact on the market. Selling pressure drove the trading to close in negative territory.
In Asian stock markets, the Central Bank of China (PBoC) again devalued the exchange rate of its yuan in the offshore market by 0.26% to 6.5079 per USD.
Meanwhile in Japan, BoJ re-established its interest rate at the level of -0.1% this month and plans to undertake a massive program of buying assets at various levels. These moves are likely to put downward pressure on Asian stock markets.
Reza said he expects the JCI to trade within support level of 4,801-4,824 and resistance level of 4,886-4,907 today (March 16).
Furthermore, he expects the Rupiah is expected to be hovering within support level of Rp13,079 and resistance level of Rp13,100 to the US dollar.
Stocks to watch today, according to NH Korindo Securities:
- MPPA, trading range: Rp 1,690-1,735
- MDLN, trading range Rp 392-406
- SMRA, trading range Rp 1,625-1,685
-CTRP, trading range Rp 420-455
- SCMA, trading range: Rp 2,960-3,100
- BIRD, trading range: Rp 6,250-6700
- BBTN, trading range: Rp 1,690-1785
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