JCI closed up at 1.42% or at the level of 6,206.42. (Credit : CNBC)

Rebound! JCI shot into the green zone

Siti Fatimah Adri
Politics & Economic
News Flash Indonesia
Aug 08, 2019
2106
After being sprawled for the last 4 trading days since last Thursday (1/8/2019), the Composite Stock Price Index (CSPI) has finally rebounded! In trading session I this Wednesday (7/8/2019), JCI closed up at 1.42% or at the level of 6,206.42.
With this result, CSPI successfully drove in the green zone. Even though the majority of Asian stock exchanges are trapped in red zone. As the Nikkei index fell 0.4%, the Hang Seng index fell 0.3%, and the Kospi index weakened 0.3%.

Yesterday (6/8/2019) local time in an interview with CNBC International, White House Economic Adviser Larry Kudlow said that US President, Donald Trump was still open to signing a trade agreement with China. This is positive news for the Benua Kuning stock exchange, which is hope related to US-China trade peace, which actually still exists.

This strengthening also affected the stock prices of six large capitalized banks (BUKU IV, core capital of over Rp 30 trillion), which on Tuesday were compactly collapsed. Today the shares of six large capital banks also finally recovered in line with buying action by local investors.

Bank Panin's shares finished the highest increase, despite foreign investors releasing this stock (net sell) of Rp 196 million. Yesterday, the deepest BBRI stock dropped to 3.51% at the level of Rp4,120 / share and today again rose 2.44%.
From the 6 bank shares of BUKU IV, the majority of domestic investors played an important role considering that only two banks were hired by foreigners today, namely Bank Mandiri with a net buy of Rp 19.32 billion and a BBCA net buy of Rp 12.29 billion, while four other foreign net sellers, namely BNGA of Rp. 40.65 million, PNBN Rp 196 million, BBRI Rp 16.96 billion, and foreign BBNI Rp 9.95 billion.

Along with the JCI correction that was so deep, buying action on the stock market in the country was carried out. Throughout the month of August (until yesterday's trade, 6/8/2019), JCI always prints corrections. If totaled, the JCI correction in the period 1 to 6 August was 4.24%.

The JCI correction that has been so practical has opened up room for Indonesian stock market players to take action today.
MNC Securities Head of Research, Edwin Sebayang said that the IHSG correction was influenced by a number of external factors, such as an increase in import duties on Chinese goods worth US $ 300 billion by the US government. It is possible that the tariff will be raised again. In addition, the Fed Funds Rate (FFR) interest rate cut by the US central bank was not aggressive, the Fed was also one of the factors supporting the correction of the JCI.

Source: https://www.cnbcindonesia.com/market/20190807122800-17-90411/menolak-merah-ihsg-melesat-142-saat-bursa-asia-kebakaran