JCI Likely to See Window Dressing This Week
22 December 2014 09:02 WIB
TEMPO.CO, Jakarta – Last week's trade saw most Asian exchanges reacting positively to The Fed's decision not to raise its interest rate. The Jakarta Composite Index (JCI) also enjoyed the euphoria, gaining 31.28 points (0.61 percent) to close at 5,144.62 bps.
Fed governor Janet Yellen made sure that the Fed Rate will remain in the range of 0.0 to 0.25 percent, boosting investors' optimism on the capital markets' short term prospect. "The Fed's decision restored investors' confidence," said Reliance Securities analyst Lanjar Nafi Taulat Ibrahimsyah, last week.
Lanjar expected the index to continue strengthening this week, with investors likely to favor cement and trade stocks such as INTP, SMGR, and MAPI, which are predicted to experience a technical rebound.
Optimism that the JCI will continue its gain is JCI also supported by fund managers' window dressing in order to improve their stock portfolios. With just six days left to trade this year, Lanjar said, effective trading in the stock exchange will encourage fund managers to maximize on window dressing.
"Although it would not be as massive as last year due to slowing economy, window dressing will still be able to push the JCI to 5,200 bps at the end of the year," he said.
Speculations that Japan's central bank will raise stimulus by up to US$80 trillion adds a positive sentiment for the index. For the beginning of this week, the JCI is predicted to move within a limited range of 5,125 to 5,175 bps.
PDAT | MEGEL JEKSON
