JAKARTA, NETRALNEWS.COM - The Jakarta Composite Index (JCI) of the Indonesia Stock Exchange (IDX) is closed lower by 0.97 points on Tuesday (08/20/2019), as investors were cautious amidst volatile sentiment.
The composite index was closed down 0.97 points or 0.02 percent to 6,295.73. The LQ45 Index, the group of 45 leading bluechips, was also down by 1.43 points or 0.15 percent to 982.69.
Mino, analyst from Indo Premier Sekuritas, said investors were still worried about the US-China trade war sentiment. Although lately the tension had subsided after the US President postponed the imposition of a 10 percent import tariff on Chinese products, the markets still tend to take a risk aversion stance.
"At the beginning of trading this morning the JCI strengthened, but at the end of the trading session it turned weak, it was due to investor concerns about volatile sentiment. Therefore, investors took a cautious stance by exiting out of risk assets," he said.
The situation, he continued, can be seen from the response of foreign investors who on this day (8/20/2019) took a sell-off. Based on IDX data, foreign investors recorded a net sell or foreign net sell of IDR 286.70 billion.
Sentiment from within the country, he said, included the riots that occurred in Papua, which were also a concern of domestic stock market players. The riots are expected not to drag on or extend to other areas.
"Even though the situation is starting to be conducive, some investors remain vigilant," said Mino, as reported by Antara on Tuesday (8/20/2019).
In addition, he added, stock market players were also waiting for Bank Indonesia's policy in the Board of Governors' Meeting (RDG) on August 21-22, 2019 regarding the benchmark interest rate (BI 7-day RR).
"It is projected that the 7-day RR BI will remain at 5.75 percent, if it is lowered, it can be a positive surprise for the stock market," he said.
Mino continued that the lowering of interest rates will provide hope for national economic growth going forward. Meanwhile, the frequency of stock trading on the IDX was 448,171 transactions with 15.23 billion shares valued at IDR 8.55 trillion. As many as 164 stocks rose, 242 stocks declined, and 137 stocks unchanged.
Meanwhile, regional exchanges included the Nikkei index rose 114.06 points (0.55 percent) to 20,677.22, the Hang Seng index was down 60.30 points (0.23 percent) to 26,231.54, and the Straits Times index edged down by 9.54 points (0.30 percent) to 3,137.99.