This JCI Cause Translucent

JAKARTA, KOMPAS.com – The Composite Stock Index (IHSG) closed lower at the end of trading session I Thursday (28/06/2018) afternoon. JCI fell to 5,692.86 [19659003] According to PT Chief Economist CIMB Bank Niaga, Adrian Panggabean, JCI fell due to several conditions that occurred simultaneously.

First, the decline of the IHSG is the effect of the global trade war threat.

"This has an impact on the valuation of stocks, especially those affected by the threat of trade war," Adrian told Kompas.com on Thursday (28/06/2018).

(Read: Trade War Concerns Trigger the War of Exchange)

The second factor is the weakening of the rupiah. Known this morning, the rupee against the US dollar has weakened to the level of Rp 14,271 [19659003] The rupee has weakened 0.76 percent from Tuesday's position at 14,163 Rp for a US dollar. This is the lowest position of the rupiah since October 2015.

Adrian said that there was also the influence of the increase in Repo BI rate of 7 days [19659005] "There is an increase effect of 7DRRR and a new increase of 7DRRR". ]

(Read: The interest rate may rise further, investors watch the RDG BI)

In addition, Bank Indonesia opens the possibility of raising again the rates of interest. interest.

"The prospect will be weakening our GDP growth because of the sharp rise in interest rates," he continued.

Adrian said not surprised if IHSG at 5,600. Because, he said, the value of the book price as an indicator of the fair value of the shares in Indonesia is rather expensive. He admitted that virtually no drugs can normalize the JCI index.

"The price correction occurs because of psychology and valuation on the market," said Adrian

(Read: Session I, JCI weakens to # 39, at the psychological level 5,600)

Previously reported, 68 shares traded higher, 340 shares weakened, and 76 shares stagnant.

The trading volume reached 5.1 billion shares with a transaction value of Rp 3.86 billion. Foreign investors continued to sell in the afternoon [19659005] Actions that contributed significantly to the weakening of the stock market: CSTC (Rp 2,780), BBCA (Rp 21,125), TLKM (Rp 3,690), BMRI (Rp 6,550), ERAA (Rp 2,570) and ASII (Rp 6,325)

The weakening of JCI coincided with the weakening of the rupiah, which in the afternoon broke Rp 14,200 per US dollar.