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JCI’s Sharp Plunge Last week, a flood of negative sentiments weakened JCI by 2.1%. On Monday, JCI dropped by 1.4%, triggered by the net sell worth IDR2 billion. Foreign investors sold HMSP and GGRM, adding to the evidence of cigarette makers as last week’s biggest losers as they posted net sell of IDR133 billion. That was also attributable to pessimism over a murky outlook of cigarette sales, coupled with profit-taking act. On Tuesday, JCI nudged up 0.9% despite foreign outflows of IDR1.449 billion. Furthermore, profit-taking acts over large-cap banking stocks, i.e., BMRI and BBRI were negative stimulus, causing foreign outflows of IDR130 billion. However, rallies in commodities stocks such as gold and coal due to all-time high crude prices were payback for Tuesday’s foreign outflows from the banking sector. On Wednesday, JCI moderated, held back by declines of 5.7% and 4.9% in AALI and LSIP: CPO stocks. Indeed, trade disputes between the U.S. and EU weakened Asian markets, including Indonesia. High tariffs on imported raw materials, imposed by the U.S. and the U.E. import duties slashed Harley Davidson’s net profits and moderated most of Asian markets’ stocks. On Thursday, JCI tumbled after Bank Indonesia (BI) held 7-DRRR unchanged at 6%. Investors’ disappointment over BI’s unchanged 7-DRRR made properties stocks reign in bearish favor. On Friday, JCI was rebounding by 0.4% thanks to Trump’s positive statement of Jinping’s visit to White House with a view to end trade war between the world’s two biggest economies. |
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