JCI Plummets over BI`s Growth Target Cut

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  • Ilustrasi Bank Indonesia (BI). TEMPO/Imam Sukamto

    Ilustrasi Bank Indonesia (BI). TEMPO/Imam Sukamto

    TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) experienced another downfall after Bank Indonesia (BI) corrected the second quarter growth target to 5.2 percent. The target revision increased investors' pessimism over the short-term prospects of stock ownerships.

    On yesterday's trade, the index lost 85.31 bps (1.76 percent) to close at 4,771.29. Foreign net sell reached Rp577 billion, putting the JCI under pressure throughout the day's trade.

    "BI's [target] revision confirmed investors' negative perception over issuers' performances," Reliance Securities analyst Lanjar Nafi Taulat Ibrahimsyah said.

    Lanjar also said that the index rate was made worse by the rupiah correction. Investors consider it is too risky to increase stock portfolios as the currency rate nears the Rp13.500 per US dollar threshold.

    Today, the JCI is projected to remain under pressure, moving in a short range between 4,720 and 4,800.

    "As [the stocks] are too underpriced, investors should have the courage to buy on weakness for UNTR and INDF," he suggested.