TEMPO.CO, Jakarta – Investors responded negatively to Joko Widodo's team of economic ministers in his Working Cabinet, correcting stock price index early in the week. The Jakarta Composite Index (JCI) opened strong at 5,086.25 bps, but fell 49 points (1 percent) to close yesterday's trade at 5,024 bps.

Purwoko Sartono, chief researcher at Panin Sekuritas, said that the index correction was indeed caused by investors' dislike over Jokowi's cabinet composition that did not meet the market expectations.

"Investors sold because they consider Jokowi-Kalla's economic ministers as outclassed by the previous administration's," he told Tempo yesterday.

The sell-off was also touted as investors' anticipation over the plan to raise subsidized fuel prices. Some domestic investors are concerned that the hike will affect issuers' performances, so they opted not to accumulate shares.

Purwoko suggested investors to consider cement stocks like SMGR and INTP. The new government's priority on infrastructure development agenda gives the sector good prospects. However, referring to the impact of deep correction, Purwoko also urged investors to keep their eyes on consumption sector stocks such as INDF and UNVR.

Today, investors' negative reaction is expected to linger. The JCI is likely to remain corrected in the range of 4,990 to 5,050 bps. The Fed's meeting to discuss the termination of its third quantitative easing (QE3) and the possibility of rising interest rates will add pressure to the index.

PDAT | MEGEL JEKSON