JCI Experiences Slight Rebound on Tuesday

TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange (IDX) closed slightly higher by 9.52 points at the end of Tuesday's trading, up by 0.19 percent to 4,922.59 points. 

Meanwhile, the Top 45 (LQ45) Index at the IDX also went up by 3.04 points or 0.37 percent to close at 831.34 points at Tuesday's close.

"The IDX is slightly gaining as market players begin to buy up shares that had slid in value on Monday, October 13, 2014, when the market dipped by 1.01 percent," said Reza Priyambada, the head of research at Woori Korindo Securities Indonesia, in Jakarta.

Reza added investors would not be flocking to the Indonesian market any time soon, because the grim global economic growth outlook for 2015 had driven many to leave riskier markets, such as Indonesia, for safer options such as the United States. The condition is further exacerbated by recent economic data releases, which suggest that European economies are not recovering as expected.

"The condition in Europe may spill-over and disrupt economic growth in other regions," said Reza.

Furthermore, many market players are choosing to wait before they buy, as a number of major companies are slated to release the summaries of their finances for the third quarter of 2014, providing clues to a company's financial health and future prospects.

An analyst for HD Capital, Yuganur Wijanarko, added that the JCI is expected to remain just above the psychological threshold of 4,900 points, which would provide the boost the IDX needed to rebound.

"If the IDX can exceed 4,992 points, then it may possibly go on an uptrend," said Wijanarko.

According to IDX records, there were 184,146 transactions today, through which 2.68 billion shares with a capitalization of Rp3.61 trillion were traded. The shares of 149 companies went up, while 139 experienced a degree of losses. The shares of 111 companies remained stagnant on Tuesday.

Meanwhile across Asia, Hong Kong's Hang Seng Index dipped by 95.41 points or 0.41 percent to 23,047.97 points, while the Nikkei slid by 364.04 points or 2.38 percent to 14,936.51 points. Singapore's Straits Times index inched lower by 7.75 points or 0.24 percent to 3,194.40 points.

ANTARA