JCI Declines as Investors Cash in Gains
Jakarta. Indonesian stocks fell on Monday after a weak rally last week — which saw a record high on Friday — as investors took profit amid negative sentiment in the domestic and overseas markets.
The benchmark Jakarta Composite Index fell 63.86 points, or 1.2 percent, to close at 5,260.02, erasing some of last month’s 3.4 percent gain.
About 8.4 billion shares worth Rp 11.7 trillion ($936 million) changed hands on the Indonesia Stock Exchange (IDX) on Monday.
“The fall was caused by profit taking in our market, especially because the JCI had reached its highest level two days in a row on Thursday and Friday,” Reza Priyambada, an analyst at Woori Korindo Securities Indonesia, said on Monday.
Still, appetite among foreign investors remained high as they made up 57 percent of the total trade, buying Rp 777 billion in shares more than they sold.
Investors are concerned over the result of Sunday’s Greek general election, which was won by the anti-austerity party, Syriza.
The party’s policy stance on Greek debt renegotiation with Germany could lead to a standoff and rising default risks, which will undermine regional financial stability, Reza said.
Reza said investors also worried about domestic political issues, such as the feud involving Indonesia’s antigraft agency and the national police.
“Maybe there are investors who over-reacted over the issue. They worry that if the issue is not properly resolved, that it would spread to other sectors,” he said.
The consumer goods industry index of 36 stocks suffered the worst decline, at 52.51 percent. This was followed by the infrastructure, utilities and transportation index of 51 stocks, which declined by 21.29 percent.
Prasidha Aneka Niaga, an agricultural commodities trading company, declined by 18 percent to Rp 117 per share.
Cigarette maker Bentoel International Investama fell 14 percent to Rp 440 a share.
Shipping company Wintermar Offshore Marine fell 9.43 percent to Rp 720, while offshore marine service company Logindo Samudramakmur declined 8.33 percent to Rp 2,200.
Meanwhile, the rupiah weakened by 0.59 percent on Monday to 12,517 against the dollar, compared to 12,444 on Friday, according to Bank Indonesia data.
GlobeAsia
Tags: Keywords: