Election Euphoria Ends; JCI Loses 85 bps
11 July 2014 20:10 WIB
TEMPO.CO, Jakarta – The index begins to retreat as the election euphoria ends. The index gain over the past couple of days prompted investors to profit take, causing the correction of most stocks' prices on Friday, July 11, 2014.
On today's trade first session, the Jakarta stock Index closed 85 points (1.7 percent) lower to 5,013.45. Stocks from all sectors moved negatively, with industrial stocks suffering the deepest correction.
Satrio Utomo, head of research at Universal Broker Indonesia, said that JCI's correction is indeed caused by the subsiding so-called Jokowi effect. Investors are beginning to let go of their stock portfolios as "the Jokowi effect would only last for two or three days," Satrio said in his daily analysis, Friday.
The index correction is also triggered by each camp's claim for victory, which leads to negative sentiments. Satrio said this practically added more burdens on the index, since the market is taking a wait-and-see stance whilst taking profits.
MEGEL JEKSON