JCI Rally Relies on Purchase Volume
21 April 2014 10:36 WIB
TEMPO.CO, Jakarta – The Jakarta Composite Index (JCI) has a chance to keep rallying if there are positive regional sentiments and if investors are encouraged to buy shares. Analyst from Trust Securities, Reza Priyambada, said that based on technical indicators the index is still in an uptrend. However, purchasing volume is becoming limited.
"Hopefully market players' impulse to buy will unlock further increases and the index will be back up," he said.
According to Reza, JCI tended to move sideways last week as trading volume had begun to decline. Purchases were offset by investors' decision to sell off ahead of the long holiday. "Fortunately, there was still a strong impulse to buy, along with investors' positive expectations over issuer's first quarter financial performance," he said.
US stock markets are beginning to move in a limited range, as investors responded negatively over the return of political tensions in Ukraine. The sentiment slightly corrected the Dow Jones industrial stock index last week. However, positive performances of technology companies such as Yahoo! and Intel managed to help Nasdaq stay within the green zone.
In Asia, market participants remain anxious over China's economic data that continues to slow. After its growth and manufacturing showed poor performances, China's foreign investment data release also showed a decline. "Market participants' optimism increasingly vanished over the thought that the Chinese government is not being aggressive in providing stimulus," said Reza.
Today, the index is expected to test the strong resistance level at 4,917. Stocks to consider include Bank BNI, Bank BTN, Gudang Garam, Indofood, TelkomIndonesia, and Astra Agro Lestari.
PDAT | M. AZHAR