JCI Closes at Record High Despite Rupiah's Depreciation  

TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange (IDX) closed 27.53 points higher at the end of Monday's trading session - boosted by Indonesia's economic performance figures, which has met the market's expectations.

The JCI went up by 27.53 points or 0.51 percent to close at 5,477.83 points, while the Top 45 (LQ45) Index went up by 6.80 points or 0.72 percent to close at 953.68 points.

"Indonesia's inflation figure as released by the Central Statistics Agency (BPS) on Monday, March 2, 2015, does well in driving the JCI's uptrend," said an analyst for Investa Saran Mandiri, Kiswoyo Adi Joe.

BPS recorded that Indonesia has posted a deflation of 0.36 percent - its' second highest deflation in the past 50 years.

According to Joe, Indonesia's economic performance has attracted foreign investors to inject capital into the domestic share market - in fact, foreign investors booked a net buy totalling Rp 628,856 billion.

The Index also gained help from external factors - in particular, People's Bank of China's decision to cut its' fund rate by 25 points to 5.35 percent. China has said that the rate cut was agreed on to help stabilize its' economy.

"The combination of positive and negative sentiments has helped the JCI sustain an uptrend. That said, it is hoped that some corrections are on the way, as it is necessary to avoid an overbought state," said Joe.

An analyst for HD Capital, Yuganur Wijanarko, added that although the JCI once again breaks its' record closing position, Rupiah's continued depreciation against the greenback could possibly limit the JCI's uptrend in the long run. "Investors should be aware that the Rupiah's continued depreciation could cause a sudden correction - as such, investors should be careful in accumulating shares for the time being," he said.

IDX records show that throughout the Monday's trading session, there were 231,138 transactions wherein 4.31 billion shares worth Rp 5.85 trillion were traded.

Meanwhile across Asia, the Hang Seng Index went up by 64.15 points or 0,26 percent to conclude trading at 24,887.44 points, the Nikkei went up by 28,94 points or 0.15 percent to close at 18,826.88 points, while the Straits Times slipped by 3.59 points or 0.11 percent to conclude trading at 3,399.27 points.

ANTARANEWS