JCI Ends Thursday in the Red

TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange (IDX) closed 6.13 points lowr at the end of Thursday's trading session to a level of 5,262.71 points.

Similarly, the Top 45 (LQ45) Index also went down by 2.63 points or 0.29 percent to close at a level of 909.05 points.

An analyst for Asjaya Indosurya Securities, William Suryawijaya, said that the JCI has yet to escape its' consolidation phase and is currently on a downtrend, as plenty of investors are choosing to wait for the Central Statistics Agency (BPS) to release Indonesia's latest economic performance figures, which is slated for Monday, February 2, 2015.

"It is hoped that the soon-to-be released economic performance figures could meet the market expectations, which will drive investors to take advantage of the current consolidation phase to accumulate shares, which will cause foreign capital to return to the domestic market," said William.

He added that if the government manages to reverse the flow of foreign funds, it will demonstrate that Indonesia's domestic investment climate is indeed favourable, which consequently will increase investor's confidence in the country's economy.

Technically speaking, William continued, the JCI has managed to stay above its' lower psychological threshold, which is currently set at 5,252 points - which will allow it to rally in the near future, and perhaps breaching its' upper threshold at 5,327 points.

An analyst for HD Capital Yuganur Wijanarko, added that the daily selling of domestic shares by foreign investors continue to hold the JCI back from returning into the green. "That said, there is still some chance for the JCI to resume its' uptrend," said Wijanarko.

Throughout Thursday's trading session, foreign investors booked a foreign net sell totalling Rp 30.568 billion, according to IDX records. There were 193,979 transactions, wherein 3.97 billion shares worth Rp 4.29 trillion were traded.

Meanwhile across Asia, the Hang Seng Index slid by 265.96 points or 1.07 percent to close at a level of 24,595.85 points, the Nikkei similarly slid by 189.51 points or 1.06 percent to conclude trading at 17,606.22 points, and the Straits Times also slid by 2.94 points or 0.10 percent to close at a level of 3,415.67 points.

ANTARANEWS