TEMPO.CO, Jakarta - The deep correction suffered by the Shanghai Composite (SHCOMP) caused the Jakarta Composite Index (JCI) to take another downturn in yesterday's trade.
In the last two days, the SHCOMP had weakened by 1.68 percent to 3,663 bps, ballooning investors' concerns that China's capital market crisis will last longer than expected.
Meanwhile in Jakarta, the JCO closed yesterday's trade 56.3 points (1.18 percent) lower to 4,714.76. Satrio Utomo, chief researcher at Universal Broker Indonesia, said that Shanghai's constant corrections prompted investors to dump shares.
The massive selloffs pushed the JCI down to the red zone as foreign net sell reached a high Rp552 billion.
Banking stocks continued to drag the index down. BBRI fell 3.8 percent to Rp9,400 per share, BBCA dropped 3.3 percent to Rp13,000 per share, and BMRI lost 1.8 percent to Rp9,375 per share.
Satrio advises investors to wait for until the JCI reaches its strong support level of 4,500-4,600 bps before accumulating stocks.
Today, the lack of positive sentiments is expected to push the index lower to a range of 4,650-4,720 bps. Investors have a chance to buy on weakness on construction stocks that are quite defensive against external sentiment, such as ADHI and WIKA.
PDAT | MEGEL JEKSON