TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange (IDX) went up by 33.67 points at the end of Wednesday's trading session - driven by the accumulation of shares by market players.
The JCI went up by 33.67 points or 0.69 percent to close at 4,933.55 points, while the Top 45 (LQ45) Index also went up by 7.93 points or 0.95 percent to end trading at 846.68 points.
"Investors are beginning to accumulate shares whose prices had plunged in the previous trading session. That said, the absence of positive sentiments from Indonesia's economic fundamentals have limited the accumulation of shares by investors," said the Director for Investments for Valbury Capital Management, Andreas Yasakasih in Jakarta on Wednesday, June 10, 2015.
As such, according to Yasakasih, the uptrend experienced by the Index is expected to last only for a short while. As long as uncertainties surrounding the Federal Reserve Bank of America's plan to raise its' fund rate, the Index is expected to remain volatile.
"Everytime there is a rumour of a possible Fund rate hike, the market reacts almost immediately - especially considering that there is a lack of a positive boost from the domestic market," said Yasakasih.
The Head of Research for Universal Broker Indonesia, Satrio Utomo, added that the Rupiah's general downtrend is expected to limit the Index's growth. "The Index is experiencing a technical rebound from yesterday's sharp depreciation, as foreign investors begin to hold off from selling their assets in the domestic market ," Satrio said.
According to IDX records, foreign investors booked a net sell totalling Rp 500,649 billion - far lower than yesterday's figure which stood at Rp 1.023 trillion. There were 239,378 transactions wherein 5.07 billion shares worth Rp 5.08 trillion were traded.
Meanwhile across Asia, the Hang Seng Index plunged by 301.88 points or 1.12 percent to end trading at 26,687.64 points, the Nikkei similarly went down by 49.94 points or 0.25 percent to close at 20,046.36 points, and the Straits Times also slid by 30.64 points or 0.93 percent to conclude trading at 3,325.77 points.