Analyst Urge for Careful Trading despite JCI Gain

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  • Ilustrasi Indeks Harga Saham Gabungan. ANTARA/Yudhi Mahatma

    Ilustrasi Indeks Harga Saham Gabungan. ANTARA/Yudhi Mahatma

    TEMPO.CO, Jakarta - With a batch of positive sentiments, the domestic stock market managed to close last week's trade with a gain to 5,227 bps. Scotland's ensuring that it will remain part the United Kingdom and Fed's decision to maintain a low interest rates policy motivated investors to accumulate shares on the stock exchange.

    Lanjar Nafi Taulat Ibrahimsyah, an analyst from Reliance Securities, said the gain will only be brief as the Jakarta Composite Index (JCI) only moved upwards because of positive external sentiments. Stock valuations are still relatively high, and the JCI is still in an overbought phase.

    "Without the support of Fed's decision and the failure of Scottish independence, it would have been difficult for the index to rise," he said.

    Lanjar also said that some stocks only moved up due to technical corrections. Financial and infrastructure stocks, which plummeted in earlier trades, gave investors opportunities to make profits. "The purchases were motivated by a buy-on-weakness."

    For the beginning of this week, Lanjar urged investors to remain cautious in trading. He predicted the index to move between 5,150 and 5,250 bps. "The increasing prices of CPO makes plantations stocks like AALI and LSIP worthy of collecting," he said.