The Jakarta Composite Index (JCI) strengthened on Friday as the spirits of investors rose along with purchasing of a number of domestic shares.
The JCI increased by 20.18 points, or 0.46 percent, to 4,363.44 in the opening session, while the index of the 45 most liquid stocks (LQ45) strengthened by 5.16 points (0.71 percent) to 736.65.
Analyst from Mandiri Sekuritas Hadiyansyah said in Jakarta on Friday that the price of crude palm oil (CPO) was moving upward, at least in the short term, pushing up share prices for plantation products in Indonesia and helping JCI shares to grow.
“This sector could become the preferred choice for short-term transactions because CPO share prices are increasing,” said Hadiyanshah as reported by Antara news agency.
Construction shares, Hadiyanshah added, could also be a good choice because the prices of several shares in this sector were still low, which could be seen as an opportunity for long term investors.
“The trajectory of the JCI on Friday will be varied but with limited strengthening. The predicted range of movement is between 4,269 and 4,415,” he said.
Meanwhile, head of Indonesian Stocks Analysts Association (AAEI) Haryajid Ramelan said that amid the rampant negative sentiments, particularly from external factors, investors were watching domestic sentiments closely.
According to Haryajid, the policy package issued by Bank Indonesia was warmly received by investors, particularly so its effort to strengthen inflation controls and to support the real sector as strength there could stabilize the rupiah.
“The BI policy [also] directly affects the financial sector [where it was] fairly well appreciated. Hopefully, the rupiah value will now become less volatile,” he added. (bbn)(++++)
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