BI Rate Not Helping JCI

TEMPO.CO, Jakarta – The domestic stock market fluctuated throughout yesterday's trading, September 11, due to the lack of positive sentiments. Briefly gaining 24 points in the first session's closing, the Jakarta Composite Index (JCI) closed the day CSPI 10 points (0.2 percent) down to 5,133 bps.

Bank Indonesia's decision to keep its interest rates (BI Rate) at 7.5 percent failed to push the index rate. Investors saw this as no surprise, thereby deciding to trade on a limited basis only.

Nizar Hilmy, an analyst at PT Universal Broker Indonesia, said the JCI rate—that tends to follow regional markets'—is prone to correction. The majority of regional stock exchanges rose significantly in the afternoon trade, but China's inflation in August caused investors to worry that the country's growth performance would decelerate again. As a result, the market eventually sold their shares.

Consumer goods stocks like GGRM, UNVR, and KLBF were the backbone of JCI's rate on yesterday's trade. Meanwhile, cement sector stocks such as SMGR and INTP weighed the index down, as the technical correction that occurred during the past week prompted investors to avoid buying stocks from the sector.

With no new positive sentiments, Nizar projected the index to close at a weak position today. The US weekly jobless claims, predicted to rise to 306,000 people,  will also add pressure to the index. With relatively limited motion, the index will move in the level of 5,080 to 5,160 bps. 

PDAT | MEGEL JEKSON