Budi Gunawan Verdict Triggers Sell-off
17 February 2015 12:34 WIB
TEMPO.CO, Jakarta – The court's ruling in favor of Police Chief candidate Comm. Gen. Budi Gunawan will pose as a negative catalyst in the domestic stock market. Investors' concern about the future of corruption combat prompted them to sell, causing the Jakarta Composite Index (JCI) to drop 48.67 points (0.91 percent) to close yesterday's trade at 5,325.5 bps, concentrating sales on consumption and infrastructure stocks.
"Investors were disappointed and decided to profit take," said Reliance Securities analyst Lanjar Nafi Taulat Ibrahimsyah.
The JCI also experienced a technical correction after breaking a new record of 5,374 bps. "Corrections happened to stocks whose prices are too expensive," said Lanjar, saying that the West Texas Intermediate's (WTI) negative movement to US$52.62 per barrel built negative expectations on the performances of mining issuers.
Today, with a tendency to be corrected, the JCI is expected to move between 5,275 and 5,345. Speculations of a BI rate adjustment and the results of Greece's debt negotiations, Lanjar said, will be the primary sentiments for today's index rate.
PDAT | MEGEL JEKSON