TEMPO.CO, Jakarta - An economist for First Capital Asia, David Sutyanto, said that the Jakarta Composite Index (JCI) may resume its uptrend over the weekend - that said, profit-taking by investors is also predicted once the uptrend sets, thus limiting the JCI's overall appreciation.
"There is still a limited chance of an uptrend - with the JCI expected to hover between 4,620 and 4,710 points," said Sutyanto through a written statement on Friday, February 5, 2016.
The decreasing risks in the global share market, following the rebound of crude oil prices, as well as the recent depreciation of the greenback has driven a lot of investors to return to trade in the domestic market once more. In fact, the JCI managed to inch upwards by 69,709 points (1.5 percent) to conclude trading at 4,665.817 points at the end of Thursday's trading session - its' highest trading position last seen in October 8, 2015.
The JCI's uptrend is also in line with the general uptrend observed across the emerging market - the MSCI Emerging Market Index went up by 2.9 percent to end trading on Thursday at 742.36 points. Good financial performance figures for the previous year, released by a number of publicly-traded financial entities in early 2016, has also increased investors' confidence in the market.
The Wall Street's movements were varied and fluctuative on Thursday, but the index managed to stay in the green. The Dow and the S&P500 each closed higher by 0.5 percent and 0.1 percent - concluding trading at 16,416.58 and 1,915.45 points respectively - with its slight uptrend associated to the US Dollar's appreciation.
The greenback traded lower by 0,8 percent against the Euro on Thursday, with one Euro trading for US$1.1190, and similarly the greenback performed weaker than the Japanese Yen. US$1 buys 117.14 yen at the end of Thursday's trading session.
The weaker US Dollar has driven the prices of commodities up - as evident in the uptrend observed across companies in the construction material sector. Multinational companies also stand to gain from the depreciation of the greenback. Other companies are also breathing a sigh of relieve after crude oil prices went up by 1.5 percent to conclude trading at US$31.81 per barrel.
Sutyanto said that domestic investors will be roused to action once Indonesia releases its economic performance figures for 2015 - which is due to be released at the end of the week and is expected to indicate a growth of 4.74 percent.
