JCI Gains after Opening in Red on Tuesday

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BEIEkonomiPos, Jakarta – The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange (IDX) slid by 5.56 points or 0.11 percent to commence trading at 5,245.45 on Tuesday morning. Similarly, the Top 45 (LQ45) Index also slipped by 1.40 points or 0.15 percent to open at 911.63.

“The JCI opened slightly weaker at the start of Tuesday’s trading session, because some investors still choose to unload their holdings to profit from the Index’s recent gains,” said the head of research at Woori Korindo Securities, Reza Priyambada, in Jakarta on Tuesday.

According to Reza, the uptrend experienced by Asian bourses is helping the Index regain some of its lost value. Furthermore, the fact that market players are over-reacting to the ongoing conflict between the Corruption Eradication Commission (KPK) and the National Police (Polri) is allowing the IDX to rebound from its recent losses.

“We hope that the conflict will not negatively impact Indonesia’s investment climate,” said Reza.

As per Antara‘s observation at 09:30 local time, the JCI has moved back into the green by climbing 8.46 points or 0.14 percent to 5,268.62.

The head of research at Valburi Asia Securities, Alfiansyah, added that the tension stemming from the brouhaha surrounding the conflict between KPK and Polri was beginning to subside.

“Market players had initially worried that the conflict may lead investors to think that Indonesia’s judiciary system is non-existent. As worries begin to subside, the JCI regains some room to continue its uptrend,” said Alfiansyah.

Meanwhile across Asia, the Hang Seng Index slid by 18.33 points or 0.77 percent to commence trading at 24,891.57, the Nikkei went up by 248.01 points or 1.42 percent to open at 17,717.44, while the Straits Times similarly rose by 21.43 points or 0.64 percent to open at 3,419.83.(tempo)