Market Players Wait for OPEC Meeting
28 November 2014 19:06 WIB
TEMPO.CO, Jakarta - The lack of negative sentiment and the bullish market occurred in the majority of regional stock exchange caused market players to continue buying stocks. The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange (BEI) on Thursday, November 27, 2014, was closed at a level of 5,145.31, increased by 12.28 points (0.24 percent). The total transaction of stocks in the regular market reached 5.5 million shares worth Rp 3.6 trillion. Foreign investors recorded net purchase of Rp 553 billion.
Tiesha Narandha Putri, an analyst from Samuel Sekuritas Indonesia, said that the JCI slightly increased after market players bought shares in sectors that had not experienced a bullish trend - such as the CPO sector with Astra Agro (AALI) as its driving share - that increased by 1.3 percent. Other than technical factor, the price increase in CPO shares was triggered by market saturation of infrastructure and construction shares, which valuations started to become more expensive.
On Friday, November 28, 2014, market players awaited for the Organization of Petroleum Exporting Countries (OPEC) meeting. As the meeting draws closer, global oil price declined to the level of US$75 per barrel. “However, there is market speculation that OPEC is adamant that they will not reduce oil production. Therefore, further decline in oil price is to be expected,” said Tiesha.
As of today, the index stays at the level of 5,120 to 5,170 with a consolidation trend. Before the OPEC meeting, market players are reminded to be wary of shares that are related to commodity. Continued decline in oil price will cause domino effects on commodity shares.
M. AZHAR