JCI Opens in Red on Wednesday
28 January 2015 15:04 WIB
TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange opened slightly lower by 4.92 points, as external negative sentiments begin to affect the Index's movements.
The JCI slipped by 4.92 points or 0.09 percent to begin trading at 5,272.22, while the Top 45 (LQ45) Index similarly went down by 1.24 points or 0.14 percent to open at 914.85.
"External negative sentiments are pressuring the Indonesian share market, which is reflected by the downtrend observed in this morning's trading session," said the head of research at Valbury Asia Securities, Alfiansyah, in Jakarta on Wednesday morning.
Alfiansyah explained that since China's economic growth seemed to be slowing down, profits across industries begin to tumble as prices dropped because of slowing demand, and overcapacity began to become apparent—especially in the property sector.
"The current situation will influence investment activities in the future," said Alfiansyah.
Other sentiments that would affect investors' decisions, continued Alfiansyah, encompassed lower-than-expected orders for durable goods in the United States (US) and disappointing financial reports for several publicly-traded large entities, which had driven the Wall Street Index to plunge and consequently caused a downtrend across Asian bourses—including the JCI.
An analyst for Asjaya Indosurya Securities, William Suryawijaya, added that the IDX's fluctuation would remain limited as the JCI was just about to exit its consolidation phase, which was expected to be followed by an uptrend.
"The fact that foreign investment still flows into the domestic market shows that the IDX may indeed enter an uptrend phase. The IDX is expected to hover between 5,250-5,348 throughout Wednesday's trading session," said Suryawijaya.
Meanwhile across Asia, the Hang Seng Index slid by 80.85 points or 0.33 percent to trade at 24,726.43, the Nikkei similarly slipped by 17.27 points or 0.10 percent to trade at 17,751.03, whilE the Straits Times Index rose by 13.33 points or 0.43 percent to trade at 3,426.85 points.
ANTARA
