TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) is estimated to receive pressure in the first trading day of the month. Last week, the index experienced a sharp fall, along with the negative movements of regional bourses. The trade balance deficit in April and the decline in commodity prices are expected to prompt investors to sell their shares.

Christandhi Reza Mihardja, analyst from Sinarmas Sekuritas, said that investors' concern over the domestic trade balance will correct the index . Projections that the trade deficit will reach US$300 million built negative perceptions over the performances of a number of listed companies.

As a result, he said, investors opted to play it safe and sell their stocks. "Anxiety pushed market participants to sell," he said yesterday.

Seeing this condition, Christandhi suggested investors to hold off buying and sell their stocks instead. He also asked market participants to look closely over what is causing the deficit. If the deficit stems from high imports, investors should sell stocks from the consumption sector. On the other hand, if the deficit is caused by declining export performances, investors should let go of their mining stocks.

For early June, the JCI is predicted to come under pressure within the range of 4,800-4,950 basis points. Nevertheless, Dow Jones's slight gain last week is expected to create a little optimism among investors to get some buying action on the trading floor.

ANY | MEGEL JEKSON