JCI Weakened by Profit Taking despite Deflation
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Kamis, 1 Januari 1970 07:00 WIB
TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) closed today's trade, September 1, with a 51.54-bps decline (0.96%) to 5,334.55. The JCI weakened despite the announcement of a deflation in August.
Throughout the day, the index moved between 5,320.08 and 5,376.64.
From the 534 stocks traded, 89 gained while 218 posted price declines and 227 stagnated.
All nine sectoral indexes closed weak, with infrastructure stocks posting the biggest correction of 1.66%, followed by the property sector.
Universal Broker Indonesia chief researcher Satrio Utomo said the deflation [announcement] should have stemmed positive sentiments. "But if we take a look at how sharp the JCI has gained over the past two months, investors are easily influenced to profit take. There is a tendency for consolidation. Good news such as [the deflation] is being used as a momentum to seek profits," he said as Bisnis Indonesia reported.
Satrio highlighted the sharp decline of cigarette company Gudang Garam's (GGRM) stock today. "One of the reasons for JCI's decline is weakening cigarette stocks. It seems investors are still concerned about the price hike rumor," he said.
The Central Statistics Agency's (BPS) deputy for distribution and services Sasmito Hadi Wibowo said August 2016's 0.02-percent deflation is the lowest rate for August in 15 years. The last time August posted excellent deflation was in 2001 with 0.21 percent.