Profit Taking Corrects JCI
21 November 2014 14:02 WIB
TEMPO.CO, Jakarta – As stock trading enters an overbought phase, the Jakarta Composite Index edged down. After the subsidized fuel hike euphoria a couple of days ago, investors who seek to book profits eventually opted to sell. As a result, the index closed Thursday 34.37 points (0.67 percent) down to 5,093.57 bps.
With most shares overpriced, investors became pessimistic about the prospects of stock ownership. "In the past one week, the JCI hike by 2.0 percent prompted investors to profit," said Muhammad Al'Amin, an analyst with Millennium Danatama Sekuritas, yesterday
Amin said JCI was also down following the correction of most Asian exchanges. Copper prices, which fell to US$301.45 per ton, and the preliminary estimate that China's November manufacturing index will be contracted to 50, gave investors negative expectations on the performance of domestic exports.
Amin reminded investors with portfolios to keep on profit-taking, as he believes the JCI is technically JCI in a downward trend. He also suggests selective buying on cheaper mining stocks such as AKRA, TINS, ANTM, and PTBA.
For today, pressure in commodity and global plantation prices might still put the JCI under pressure between 5.030 and 5.130 bps.
PDAT | MEGEL JEKSON