JCI Opens in Red on Monday Morning
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Senin, 9 Maret 2015 14:48 WIB
TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange (IDX) slipped by 30.92 points or 0.92 percent to begin trading at 5,483.85 points at the start of Monday's trading session, while the Top 45 (LQ45) Index similarly went down by 7.81 points or 0.81 percent to commence trading at 952.96 points.
"The downtrend experienced by the majority of bourses across Asia, the rupiah's continued depreciation, as well as the declining inflow of foreign investment into the domestic share market are causing the JCI to decline," said the head of research for NH Korindo Securities Indonesia, Reza Priyambada.
According to Reza, the increased possibility for a Federal Fund Rate hike in the United States (US) is stopping Asian bourses to continue their uptrends—including the JCI. "The possibility that the US central bank authority may raise its fund rate sooner than initially predicted increases after the US government and non-farm payroll figures indicate an increase, which is also accompanied by a decrease in unemployment benefit claims, is holding the JCI from appreciating further," he said.
Domestically, the rupiah's continued depreciation against the greenback has begun to cause investors to worry about Indonesia's economic growth outlook.
The head of research at Valbury Asia Securities, Alfiansyah, said that the rupiah's continued depreciation against the US Dollar would cause inflation to increase and could potentially cause a trade deficit.
"Although we remain optimistic of the JCI's capacity to remain trading in the green, investors still need to remain vigilant as scores would engage in profit-taking, especially in light of the Index's recent record-breaking closing position," he said.
Alfiansyah suggested investors look into shares relating to the infrastructure sector—including construction companies and its derivatives—as the sector was expected to perform well if Indonesia's government remained committed to developing the nation's infrastructure.
Meanwhile, across Asia, the Hang Seng Index slipped by 186.82 points or 0.77 percent to open at 23,977.18 points, the Nikkei slipped by 0.78 percent to commence trading at 18,822,64 points, and the Straits Times Index similarly sagged by 29.98 points or 0.88 percent to open at 3,387.5 points.
ANTARA