Indonesia's benchmark stock index declined on Tuesday midday (03/01) — its first day of trading in 2017 — as investors resorted to profit-taking, capitalizing on relatively high stock prices in the new year. (Antara Photo/Yudhi Mahatma)

JCI Declines on First Day of Trading in 2017 at Midday Break

BY :SARAH YUNIARNI

JANUARY 03, 2017

Jakarta. Indonesia's benchmark stock index declined on Tuesday midday (03/01)  its first day of trading in 2017  as investors resorted to profit-taking, capitalizing on relatively high stock prices in the new year.

The Jakarta Composite Index, or JCI, closed 0.12 percent lower to 5,264.30 in the first trading session, compared to Friday last week.

All sectors were booking losses, led by miscellaneous industries, trade, services and investment sectors.

"Early this year, most traders took advantage of domestic stocks, which prices are still considered relatively high," Binaartha Sekuritas analyst, Reza Priyambada said, as quoted by Antara News agency.

Inflation data announced earlier on Tuesday, was lower than expected and was not able to lift the market sentiment.

The Central Statistics Agency, or BPS, announced that the country's annual inflation rate eased to 3.02 percent in December from November's 3.58 percent. A median figure from a Reuters polling showed December's annual inflation was expected at 3.10 percent.

Still Bullish

Despite the poor performance in the first day of trading this year, market players remain optimistic over the local stock market's long term prospects, Reza said, adding that the country has a strong economy, which investors will take into consideration.

He added that the government's tax amnesty program will also have a positive impact on the markets in the long term.

As previously reported, the government is still struggling to meet its asset repatriation target in the amnesty program, expected to bring billion dollars stashed overseas by Indonesian investors.

Tuesday's opening session was witnessed by Vice President Jusuf Kalla, who said that he is optimistic about the prospects of the local stock markets, as Indonesia's economy is improving and as the government has made stronger efforts to improve its investment climate by deregulating complex rules via a series of policy packages.

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