JCI Remains Prone to Correction despite Rebound
5 May 2015 13:06 WIB
TEMPO.CO, Jakarta - Massive buying that kicked off during yesterday's trade helped the Jakarta Composite Index (JCI) to gain. Reliance Securities analyst Lanjar Nafi Taulat Ibrahimsyah said the market reaches a near saturation point for selling amidst the slowing domestic growth in quarter one.
The buy-off pushed the JCI up by 54.71bps (1.08 percent) to 5,141.14, with industrial sectors leading the gain with 2.8 percent.
However Lanjar said the buy-off was only an attempt to maintain the index rate. If the gross domestic product (GDP) falls below expectations, the JCI will be corrected to somewhere around its lowest support level of 4.900.
"For short-term traders, yesterday's buy-off could be an effort to prepare for profit-taking," he said.
He suggests investors to refrain from buying plantataion and mining stocks that will be affected by China's manufacturing index drop to 48.9.
For today, he projects the index to move sideways between 5,070 and 5,172.
PDAT | MEGEL JEKSON