JCI Opens in Red on Wednesday Morning
11 March 2015 14:22 WIB
TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange (IDX) on Wednesday morning slipped by 24.60 points, reflective of the varied movement of bourses across the globe.
The JCI is down by 24.60 points or 0.45 percent to commence trading at 5,438.32 points, while the Top 45 (LQ45) Index is similarly down by 6.21 points or 0.65 percent to begin trading at 943.17 points.
"The JCI uptrend is stalled as the majority of bourses across the globe are experiencing some degree of depreciation, as investors' worries over low oil prices, currency fluctuations, and the Greek bailout fiasco are stoked once more," said the head of research at Valbury Asia Securities, Alfiansyah, in Jakarta on Wednesday.
Alfiansyah said that market players were anticipating the results of the meeting between Greece and the Troika—its creditors that include the European Commission (EC), the European Central Bank (ECB) and the International Monetary Fund (IMF)—regarding Greece's emergency bailout fund, which needs to be agreed upon to avoid an imminent Greek default.
Furthermore, continued Alfiansyah, the possibility of a US fund rate hike had added to the uncertainties in the market.
Domestically, Bank Indonesia's (BI) optimism on the Indonesia's inflation figure throughout 2015 has yet to diminish despite the continuously depreciating rupiah.
"The lack of positive global sentiments has placed the JCI under pressure throughout Wednesday's trading session," said Alfiansyah.
A senior analyst for LBP Enterprise, Lucky Bayu Purnomo, said that the stability of the domestic financial market could be kept in check as long as the government could assure the market that Indonesia's economic outlook would remain positive.
"The government have to be able to keep the prices of basic necessities low—this catalyzes Indonesia's economic growth in the future," said Purnomo, adding that Bank Indonesia (BI) should cut its core reference rate to boost Indonesia's economic growth by increasing the amount of credit available for start-ups and business expansions.
Meanwhile, across Asia, the Hang Seng Index slipped by 34.40 points or 0.14 percent to commence trading at 23,862.58 points, the Nikkei went up by 76.02 points or 0.43 percent to open at 18,745.13 points, while the Straits Times is down by 8.07 points or 0.23 percent to begin trading at 3,390.19 points.
ANTARA
