JCI Makes Record, Beware of Profit-Taking Action

TEMPO.CO, Jakarta - Foreign investors continue net purchases after a share selling spree in the past three weeks. On Monday’s trade, March 31, Jakarta Composite Index (JCI) Indonesia Stock Exchange skyrocketed by 80.02 points (1.47 percent) to level 5,518,67.  The index recorded a peak of all time since March 6.

Analyst from PT Reliance Securities Lanjar Nafi Taulat Ibrahimsyah said the index rose sharply after being triggered by a purchase from market players against leading stocks.  Foreign investors, who previously did a sell-off, are currently buying back shares with a net purchase of Rp880 billion.  “The entering of foreign funds excited stock markets and made a record.”

Shares that are hunted by market players are from blue chip banking, including BRI, BCA, Mandiri, BNI and BTN.  The sectoral sentiment, inform of interbank interest rate offer regulation issued by Bank Indonesia, adds a positive outlook to banking shares.  Local investors are also returning to hunt construction and property sector shares.

According to Lanjar, yesterday was the deadline for the submission of financial statements of the issuer.  The internal sentiment alsoencourages to buy some stocks.

Technically, JCI’s sharp jump that have occurred during the last few days, has made leading stock prices becoming more expensive to purchase. There’s a possibility that JCI will be corrected first to become 5,460 before resuming medium term uptrend to a level of 5,600.

Today, JCI will be in levels 5,465 – 5,050 with a consolidation trend until it weakens. Market players are advised to observe the early month’seconomic data, including inflations and the U.S. and Chinese economic data.  “When the economic data is below expectation, there is noharm in selling stocks that has already gain profit,” Lanjar said.

M. AZHAR (PDAT)