TEMPO.CO, Jakarta – The Jakarta Composite Index (JCI) closed 15.21 points (0.30 percent) lower to 5,058.85 bps yesterday. Lanjar Nafi Taulat Ibrahimsyah, an analyst from Reliance Securities, said the correction was triggered by sentiments from the planned fuel price hike, with investors having no idea on when and how much the hike would be.

Fortunately, the release of listed companies' third quarter financial statements managed to keep the index rate.

Positive performances shown by plantation issuers kept the JCI from being corrected deeper. Plantation Stocks such as AALI and LSIP, which posted profit growths of Rp1.9 trillion and Rp698.6 billion, respectively, boosted investors' optimism to collect shares. Plantation stocks hence became the leader in the agriculture sector, advancing at a rate of 3.4 percent.

In addition to affecting issuers' performances, the subsidized fuel price hike is expected to improve the trade balance. Lanjar said that the Fed's confirming the end of its quantitative easing also affected the index correction. The US dollar liquidity is likely to decline, along with foreign cash flow into emerging markets.

With the increasing prices of global commodity prices, investors are advised to focus on plantation and mining stocks like AALI, LSIP, TINS, and INCO. "With crude palm oil prices increasing to RM2,263 per ton, plantation stocks become more attractive to collect," he said.

Today the JCI is predicted to move sideways with a weakening tendency between 5,030 and 5,100 bps.

PDAT | MEGEL JEKSON