JCI Likely to Weaken Further
10 September 2014 14:10 WIB
TEMPO.CO, Jakarta - Profit-taking caused the domestic stock market to experience a significant correction. After making new records in earlier trading days, investors' selloff yesterday lowered the prices of stocks from all sectors, forcing the Jakarta Composite Index (JCI) to close by 49 points (0.9 percent) lower at 5,197 bps.
Purwoko Sartono, chief researcher at Panin Sekuritas, said it is normal for the index to weaken after successfully setting a new record. "Investors' motivation to sell is also affected by the index's historical trend," he said referring to the fact that JCI frequently gets corrected after breaking records.
However, Purwoko believes that the correction will be brief, as there are expectations that the performance of the new government will encourage the market to buy.
For the time being, Purwoko urges market participants to gain profits from their portfolios, suggesting blue chip stocks like TLKM, EXCL, BBRI, and BBCA.
Today the JCI is predicted to move in a limited range of 5,165 to 5,231 bps.
PDAT | MEGEL JEKSON
