Capital Outflows May Correct JCI
Translator
Editor
Kamis, 1 Januari 1970 07:00 WIB
TEMPO.CO, Jakarta - Positive economic developments in the United States (US) may lead to capital outflows in emerging markets. This momentum puts the rupiah in a position that is prone to correction, while the stock market will sway within a consolidated range following an increased risk of capital outflow.
First Asia Capital analysts David Sutyanto projects the Jakarta Composite Index (JCI) to move in various directions today, with a tendency to be corrected increasing risks in emerging markets.
"The JCI is expected to move around 5,180 bps with a resistance level of 5,230 and a tendency to be corrected," he said on Thursday, November 24.
However, David predicts that metal mining stocks will strengthen.
On Wednesday, the index managed to inch up and close 0.14-percent higher at 5,211.99. Yesterday's trade saw a foreign net sale of Rp806.89 billion.
The stock market will remain overshadowed by risks of a rupiah correction and rising bond yields; triggered by capital outflows. In the bond market yesterday, the 10-year Indonesian bond rose to 8.01 percent.
DESTRIANITA