IDX Opens at 5,033.36 on Friday Morning

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  • Bursa Efek Indonesia, Jakarta. TEMPO/Tony Hartawan

    Bursa Efek Indonesia, Jakarta. TEMPO/Tony Hartawan

    TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange (IDX) opened slightly weaker by 0.86 points or 0.02 points to start trading at 5,033.36 points on Friday morning. 

    Meanwhile, the Top 45 (LQ45) Index also slid by 0.21 points or 0.03 percent to 857.39 points. 

    "The movements experienced by the IDX are considered normal as the market is still in a consolidation phase. Also, the movements across Asian bourses are rather varied at Friday's start," said William Suryawijaya, an analyst for Asjaya Indosurya Securities in Jakarta on Friday, November 7, 2014.

    According to William, market players are still waiting for the government to realize the promised cuts to fuel subsidy, which is hoped to improve Indonesia's transactional balance in the future.

    The slight downtrend is buffered by the influx of foreign investments into the domestic market, and as such, there is enough sentiment that may allow the IDX to gain position. Technically speaking, said William, the JCI was still well within the supply level of 5,032 points.

    The head of research at Valbury Asia Securities, Alfiansyah, added that the JCI was still shadowed by uncertainties surrounding the fuel subsidy cuts.

    "The uncertainties have actually driven commodity prices up, which means inflation rate is going to rise. This adds to worries among investors, especially in light of the slowdown experienced by the Indonesian economy," said Alfiansyah.

    Meanwhile across Asia, the Hang Seng Index slid by 153.06 points or 0.65 percent to 23,496.25 points, while the Nikkei went up by 96.91 points or 0.58 percent to 16,889.39 points, and similarly the Straits Times Index rose by 3.68 points or 0.11 percent to 3,294.64 points.