The JCI opened in the green amidst positive trend across Asian markets and
overnight gains in US markets. The markets continued to trade in the positive
zone in the morning trade, thereafter, as selective heavy-weight stocks
witnessed relatively strong buying. However, a slide was witnessed in late
afternoon trade as markets turned volatile and traded in the red as lack of
strong catalyst triggered profit taking activities. The index lost only 5.2 points or
0.17% to close at 3,099.6.
Market breadth was negative as losers outpaced gainers, 73 to 110, while 227
stocks were unchanged. Bank BCA (BBCA, -1.69%), Bank Mandiri (BMRI, -
1.69%), Unilever (UNVR,-0.91%) and Telkom (TLKM, -0.57%) were the leading
contributors to the market decline. Indofood (INDF, +5.46%) extended its gain
ahead of its subsidiary’s IPO and help limit the decline in the JCI. Trading value
lowered to Rp2.7 tn (US$305 mn) with foreign investor bought only a net of
Rp48.6 bn (US$5.4 mn). Meanwhile, the Rupiah slightly declined and breach
9,000/US$ level yesterday.
Following yesterday's surprise reversal of fortunes, the market may resume its
downward bias in today's trading session and the announcement of August
inflation tomorrow, which is expected at above 1%, could be used as excused
to sell interest-sensitive stocks. Today,