JCI Edges Up over Low Inflation
2 October 2014 08:56 WIB
TEMPO.CO, Jakarta - Selling pressure that hit the stock market since late last week finally subsided after the release of inflation data, which was better than expected. In yesterday's trade, the Jakarta Composite Index (JCI) gained 3.33 points (0.06 percent) to close at 5,140.913 bps. Foreign net sales were recorded at of Rp388 billion.
"Market players are repurchasing shares which prices were discounted due to corrections in previous trades," said Helen Vincentia, analyst from PT Mega Capital Indonesia.
The stock market was reinvigorated after the economic data release at the beginning of the month turned out better than expected. September's inflation was relatively low at around 0.27 percent, lower than the market's initial estimate of 0.52 percent. Meanwhile, the August trade balance was recorded at a deficit of US$318.1 million US.
"Stocks that are related to inflation and interest rates were bought in bulks, particularly banking, construction, and property," said Helen.
Today, the index is expected to move between 5,080 to 5,198 bps with a tendency to consolidate. The rupiah correction is expected to weigh on the JCI. "Investors are recommended to look at banking stocks, infrastructure, construction, and property," said Helen.
PDAT | M. AZHAR