JCI Edges Up as Investors Re-enter Capital Market
23 April 2014 14:22 WIB
TEMPO.CO, Jakarta - The absence of negative sentiment in the country prompted market participants to act rationally and re-enter the capital market. On yesterday's trade closing at the Indonesia Stock Exchange (IDX), the Jakarta Composite Index (JCI) rose 5.91 points (0.12 percent) to 4,898.20. The index struggled to remain in the green zone throughout the session, before reversing direction and moved up ahead of closing.
"Profit taking that has been going since last weekend finally stopped because market participants did not see strong reasons to sell," Trust Securities' analyst, Reza Priyambada, said yesterday.
Domestic sentiment that is affected by the issue of political parties' coalition was not too dominant in influencing the index rate. There is also the uncertainty about who will run as Joko Widodo's vice president.
According to Reza, uncertainties in the political conditions had forced market participants act rationally—buying stocks that were corrected in previous trades. Investors also began to shift their attention to mining stocks that were affected by rising commodity prices, he said.
Technically, the index has begun to experience a limited rate, moving between 4,700 and 4,900. However, the JCI still has a chance to penetrate its resistance level if parties nominate presidential candidates that fit the market's expectations.
Today, the index is expected consolidate between 4,820 and 4,900. Investors are advised to remain cautious and pay attention to the trading volume before making a decision to buy. "Stocks that could be considered include Vale Indonesia (INCO), Trada Maritime (TRAM), and Arwana Citramulia (ARNA)," said Reza.
PDAT | M. AZHAR