JCI Continues Uptrend on Wednesday's Close  

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  • ANTARA/Andika Wahyu

    ANTARA/Andika Wahyu

    TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange (IDX) went up by 40.52 points or 0.87 percent at the end of Wednesday's trading session to close at 5,246.13 points, while the Top 45 Index (LQ45) similarly went up by 8,74 points or 0.97 percent to conclude trading at 910.98 points.

    "The JCI is continuing its uptrend as worries relating to El-Nino's impact on Indonesia's crude palm oil (CPO) industry begins to subside, and the market is also responding to rumours that Bank Indonesia (BI) is planning to decrease its' loan to value (LTV) ratio," said Valbury Capital Management's Investment Director, Andreas Yasakasih in Jakarta.

    Yasakasih explained that Indonesia's CPO reserves is sufficient despite the threat of El-Nino, which has eased worries among investors about its' possible impact on the performance of publicly traded companies within the industry.

    "Market players are optimistic that the performance of those within the CPO industry will begin to recover, which will allow those companies tonpost positive financial performance reports," said Yasakasih, before adding that BI's plan to decrease its' LTV ratio will drive investors to accumulate shares within the property sector.

    Such circumstances, continued Yasakasih, will have a spill-over effect on second and third tier shares in other sectors. "These shares are also expected to experience an uptrend, which hopefully will allow the Index to sustain an uptrend," he said.

    IDX records show that throughout Wednesday's trading session, there were 289,667 transactions wherein 4,5 billion shares worth Rp5,30 trillion were traded.

    The shares of 192 companies experienced an uptrend, 128 shares experienced some degree of negative corrections, whereas 93 remained stagnant.

    Meanwhile across Asia, the Hang Seng Index slipped by 157.90 points or 0.58 percent to close at 27,249.28 points, the Nikkei went up by 139.88 points or 0.71 percent to conclude trading at 19,764.72 points, while the Straits Times Index went up by 10.84 points or 0.31 percent to end trading at 3,453.17 points.