JCI Down 0.4% in Morning Trading
26 August 2014 16:04 WIB
TEMPO.CO, Jakarta - It seems that investors are turning their attention to the recent restrictions on the sale and consumption of subsidized fuels, as reflected by the negative corrections experienced by the Jakarta Composite Index (JCI) throughout the first trading session of the day.
"The JCI is unable to continue its previous gains, as there are still uncertainties surrounding the prospect of a raise in the price of subsidized fuels," said the head of research for Universal Broker Indonesia Satrio Utomo on Tuesday, August 26, 2014.
At the end of the first trading session, the JCI inched lower by 22 points (0.4 percent) to close at 5,163.
Satrio said that movements within the Index is affected by the negative sentiments arising from concerns of an impending fuel shortage. Investors are worried about the dwindling supply of subsidized fuels that has caused massive queues in gas stations around Indonesia, which they believe may have a negative impact on Indonesia's domestic economic growth.
As such, many investors - which had chosen to wait-and-see the actual impact of the restrictions on the ground - chooses to unload their shards. In the first session of the day, foreign investors sold Rp155 billion worth of shares in the finance and property sector. As a result, BBRI shares weakened by 1.5 percent to Rp11,125 per share, BBNI moved lower by 1.8 percent to Rp5,325, whereas LKPR fell by 2,2 percent to trade at Rp1,095 per share.
Despite the negative corrections, JCI's slight downtrend is actually in line with the movements of regional bourses - Nikkei 225 slightly weakened by 0.44 percent to 15,536.76 points, Hangseng also inched slightly lower by 0.13 to 25,134.96 points, while the Shanghai Index crept down 0.44 to 2,219.52 points. Worries over a possible increase of world oil price as Ukrainian officials accused their Russian counterparts of invading its borders under the guise of sending humanitarian aid into Ukraine have pushed some investors to stop accumulating shares in the global market.
MEGEL | PDAT