JCI Edges Up Amid Selloffs
16 October 2014 14:36 WIB
TEMPO.CO, Jakarta – The stock market noted another gain despite foreign investors' ongoing selloffs. Domestic investors bought heaps of cement and large cap stocks, allowing the Jakarta Composite Index (JCI) to resume its technical rebound and gained 40 points (0.8 percent) to close yesterday's trade at 4,962 bps.
Muhammad Al Amin, analyst from Milenium Danatama Sekuritas, said the index is experiencing another technical reinforcement as investors only hunt down overly cheap stocks. Foreign investors are booked another net sale of Rp183 billion, showing that the JCI is still not entering a bullish trend.
The JCI gain is also influenced China's annual inflation that fell to 1.6 percent, which is translated as an indication that there are chances that the Asian giant might provide additional stimulus.
Today, the JCI is predicted remain under pressure, moving between 4,905 and 4,970 bps. Investors are advised to avoid mining and plantation stocks as ITMG, ADRO, PTBA, BWPT, and LSIP. "There has been no sign of improvement in global commodity prices; it is wise to keep avoiding shares from both sectors," said Amin.
PDAT | MEGEL JEKSON