JAKARTA (TheInsiderStories) - Indonesian shares are expected to trade flat to lower today on ongoing profit-taking as market players are waiting for fresh leads to enter the market. Market players are now eyeing President Joko Widodo’s speech on introductory of 2017 draft State Budget at the Parliament building today.
On Monday, the Jakarta Composite Index (IHSG) closed down 56 points or down 1.05 percent to 5,320, extending previous days’ decline. The JCI ended lower in early of the week after moving between 5,296-5,396. As many as 91 stocks rose, 247 stocks declined, 64 stocks did not move, and 164 shares not traded.
The trading value reached Rp6.52 trillion, consisting of regular transactions Rp5.19 trillion, negotiations Rp1.32 trillion, and cash Rp11.97 billion. On the regular market, foreign investors posted a net purchase transactions (net buy) Rp227.33 billion.
Eight out of 10 sectoral indices weakened, led by the infrastructure sector, which fell 2.34 percent and the mining sector is down 1.74 percent.
From Asia, the majority of stock index corrected. Nikkei225 index in Japan fell 0.23 percent and Straits Times Index in Singapore fell 0.01 percent, while the Hang Seng index in Hong Kong has appreciated 0.73 percent.
Mandiri Sekuritas said the majority of stock indices in Europe has strengthened since it opened. FTSE100 index in Britain rose 0.16 percent, the DAX in Germany gained 0.33 percent, and the CAC in France has appreciated 0.07 percent.
In the foreign exchange market, the exchange rate strengthened 28 points (+ 0.21 percent) to Rp13,090 per US dollar, after moving in the range Rp13,080-Rp13,126.
Following some news highlights that may affect shares trading today, according to Mandiri Sekuritas:
- State Savings Bank Tbk (BBTN, Rp1.845, BUY, TP 2150) non-interest, targeting revenue growth at the end of the year more than in the first half to offset the company’s interest income. During the first 6 months of this year, BTN recorded a fee based income worth Rp298 billion, growing 15.73% on an annual basis.
- PT Lippo Karawaci Tbk (LPKR, Rp1.150) said its net profit as much as 35.79% as of June 2016. The decline was driven by the increase in operating expenses in June 2016.
- PT Bank Rakyat Indonesia (BBRI, Rp12.000, NEUTRAL, TP 11,300) posted a net profit for the year amounting to only bank Rp12,04 trillion in the first half of this year, edged up 1.51% of Rp11,86 trillion in the period same period last year. one of the drivers of the increase in profits during the first half 2016 BBRI is interest income rose 12.61% YoY.
- BBRI will issue a continual bond volume II of Rp20 trillion in order to strengthen the capital and liquidity resources in the provision of SME loans.
- The Ministry of Public Works and Public Housing (PUPR) state subsidy fund mortgages (mortgage) the liquidity facility housing finance program (FLPP) will be Rp35 trillion in 2017. That number rose significantly compared FLPP subsidy funds for this year of more than Rp12 trillion. ( Okezone.com).
- The Central Statistics Agency (BPS) recorded that in July 2016 exports of US $ 9.51 billion, with the composition of the oil and gas (oil) amounted to US $ 1 billion and non-oil US $ 8.52 billion. The export itiu turned out to be the lowest since 2009. (*)