Rupiah, JCI Remain Sluggish Post Eid Holiday

  • Font:
  • Ukuran Font: - +
  • TEMPO.CO, Jakarta - Analysts are predicting that the rupiah and the Jakarta Composite Index (JCI) to stay weak after the Eid holiday.

    Kiswoyo Adi Joe, managing partner at PT Investa Saran Mandiri, said transaction volume on today's market opening is still going down. Kiswoyo projects the JCI will move between 4,800 and 5,000 bps.

    Similarly, First Asia Capital's chief researcher David Sutyanto estimates that the capital market will be bustling with activity again on next Monday, as market players are still reeling in the holiday spirit for this week.

    A different opinion came from LBP Enterprise analyst Lucky Bayu Purnomo. Lucky predicted the market to close strong today, supported by the positive economic growth in Asia and the rest of the world during the holiday.

    Lucky said that whilst Indonesia's markets were closed for the holiday, the Asia Pacific region showed signals of high liquidity growth following the increase of oil prices. This encouraged other investments and pushed the commodity prices as well as currency rates.

    For today, Lucky projected the JCI to be in the range of 4,950-4,975 bps.

    As for the rupiah, Lucky said it will continue to weaken until the Federal Reserve decides whether or not it will raise interest rates.

    For the short run, he predicts the rupiah to be traded for Rp13,300 to Rp13,350 per US dollar. As for the rest of the year, he estimated the rupiah to continue depreciating until it reaches a range of Rp13,750-Rp13,800 per US dollar.