JCI’s Rebound of 1.8% Last Week

Foreign investors thrilled to know that BI held 7DRR unchanged at 6.0%. Last week’s foreign net sell of IDR79 billion, far lower than the foreign net sell of IDR3.3 trillion in the last two-week. Despite the slight foreign net sell, JCI was rebound at 1.8% thanks to the foreign net buy of nearly IDR637 billion on the banking and infrastructure sectors. Furthermore, foreign investors target the net sell on the basic industry sector, poultry in particular. The poultry industry posted the foreign net sell of IDR416 billion due to its high valuation. For example, the price of CPIN, the stock code of Charoen Pokphand Indonesia is appreciated to 120% as of January 2018, while the stock of Japfa Comfeed Indonesia (JPFA) soared to 130% at the early of January 2018 and hit an all-time high in February 2019. We analyze foreign investors to rotate portfolios from high-valuation industries to the lower-valuation industries.

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