JAKARTA (TheInsiderStories) - Indonesian shares are expected to trade mixed today, as some players are likely to trade cautiously as they are waiting for fresh leads to make new moves, with declines of Wall Street last Friday may prompt some players to cash out. Banking stocks could however provide some support to the market, following the central bank’s decision last Friday to set BI 7 Days Repo Rate at 5.25 percent.
Starting August 19, the central bank has replaced BI Rate as reference rate with BI 7 Days Repo Rate. Currently, BI Rate was at 6.25 percent.
On Friday, the Jakarta Composite Index (JCI) fell 45 points or down 0.83 percent at 5,416.
On Friday, in Wall Street, DJIA edged down 0.24 percent, S&P500 fell 0.14 percent and Nasdaq lost 0.31 percent. European stocks mostly closed in red zone, with FTSE edged down 0.15 percent, DAX in Germany fell 0.55 percent and CAC in France lost 0.82 percent. In Asia, Nikkei edged down 0.36 percent, Hang Seng in Hong Kong fell 0.37 percent and SSE in Shanghai dropped 0.13 percent.
Reza Priyambada, head of research NH Korindo Securities Indonesia, projected the JCI to trade within support level of 5,351-5,389, and resistance level of 5,443-5,487 points.
The JCI last Friday failed to break the resistance level, market players reacted negatively ahead of the BI Board meeting results announcement by offloaded their shares. Reza said the JCI could still under selling pressure today, therefore market players need to watch out market sentiment.
Stocks to watch today:
BMRI
BBRI
PNBN
MAIN
TINS
JSMR
DOID
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