JCI Slips on Oil Price Decline

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  • Ilustrasi Indeks Harga Saham Gabungan (IHSG). ANTARA/Yudhi Mahatma

    Ilustrasi Indeks Harga Saham Gabungan (IHSG). ANTARA/Yudhi Mahatma

    TEMPO.CO, Jakarta – The Jakarta Composite Index (JCI) edged 0.17 points down to close yesterday's trade at 5,048.67. The index was flat on the lack of new sentiments that left investors with no buying motivation. The market is also on a waiting stance to see the development of global oil prices and the government's decision on raising the prices of subsidized fuel.

    Universal Broker Indonesia chief researcher Satrio Utomo said investors were hesitant to trade since there was no expectation of a positive sentiment for the near future. Obscurities over the government's plan to raise subsidized fuel prices held investors back from buying in bulks. "The lack of positive expectations reduces investors buying motivations further," Satrio said.

    The price of Brent crude oil continues to fall, reaching US$79.64 per barrel, its lowest level in four years. Investors responded to the decline by avoiding mining stocks with oil-based and coal-based products.

    Satrio said the declining prices of oil and other commodities in international markets makes stock trading prospects become increasingly negative for the short term. Investors are anxious to profit take, as "mining and plantation stocks are affected by the weakening prices of both commodities at global level," he said.

    Until there is some kind of clarity regarding the fuel hike, Satrio suggested investors to remain cautious in trading, recommending them not to buy in large quantities.

    Today the index is predicted to move in a limited in the range of 5,030-5,060 bps.