JCI, Asian Markets Weaken

TEMPO.CO, Jakarta – The Jakarta Composite Index (JCI) retreated by 49.91 points (1.01 percent) to close yesterday's trade at 4,913.05 bps, along with the corrections in global and regional stock markets. Concerns about a declining global economy pushed investors to sell their financial portfolios in the stock market.

Yesterday's trading noted a foreign net sale of Rp595 billion, concentrated on banking, manufacturing, and various industries stocks.

In addition to the global economic growth correction, investors' anxiety is assumed to have stemmed from the significant drop in China's trade balance, which created a negative perception on the Asian giant's future performances.

Lanjar Nafi Taulat Ibrahimsyah, an analyst with Reliance Securities, estimated the index to move in a positive direction today as a response the third quarter banking survey. JCI is expected to move between 4,900 and 4,971 bps.

Investors are still advised to pay attention to basic industries and consumption stocks such as SMGR, SMCB, AISA, and ROTI. "Because [these stocks] are still considered to be below their fair prices, industry and consumer base stocks are very likely to experience technical rebounds," he said.

PDAT | MEGEL JEKSON