JCI Rebounds on Jokowi-CEO Meet

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  • TEMPO.CO, Jakarta – After a week-long of fluctuations, the Jakarta Composite Index (JCI) managed to rebound. The index jumped 67 points (1.3 percent) to close yesterday's trade at 5032.28, noting a foreign net buy total of Rp935 billion.

    Blue chip stocks from banking and infrastructure sectors—that have been depressed over the past week—like TLKM, PGAS, BMRI, BBRI, and BCA  gave the index a strong boost to close Tuesday's trade on a high note.

    Panin Securities chief researcher Purwoko Sartono said investors were affected by expectations over President Joko Widodo's meeting with hundreds of international business leaders at the APEC CEO summit. Jokowi's act in promoting investment opportunities in Indonesia—especially in the maritime and the transportation sectors—built investors' confidence about infrastructure development programs in coming years.

    "Jokowi's meeting with the global CEOs affected investors' interest on infrastructure stocks," Purwoko told Tempo yesterday.

    Purwoko said investors also took advantage of external positive sentiments. The Dow Jones' record-high of 17,613.740 and the increased price of CPO to RM2,238 per ton prompted investors to buy.

    For today, Purwoko projected the index to remain in a positive area between 4,990 and 5,070 bps. Amid uncertainties over the fuel price hike plan and limited opportunities for blue chip stocks to gain, Purwoko suggested investors to keep their eyes on second-tier stocks like ELSA, ADHI, and WIKA.