JCI bounces at 5.667 level with no Rupees and interest rates

Jakarta, CNN Indonesia – The fall in the rupiah exchange rate which almost touched 14 Rp. Per US dollar has become the main negative sentiment of the Jakarta Composite Index (IHSG) all over the world. IHSG also rebounded to 2.07 percent at the level of 5.667 at the end of this afternoon, after having moved between the 5661-5 801 levels.

] Citing investing.com, the Rupiah exchange rate at 16.00 WIB was in the region of Rp14.389 per US dollar. This figure decreased by 1.09% or 154.5 points from the previous level of 14.233 Rp per US dollar.

"The weakening of the rupiah is a negative sentiment for economic performance," said Lucky Bayu Purnomo at CNNIndonesia.com In addition to the rupee, Bank Indonesia's (BI) decision pending ) to increase the benchmark interest rate by 25 basis points also increases the burden of the index today.

As we know, BI will announce the results of the Board of Governors. (19659004) "The chance of raising the benchmark interest rate to five percent from 4.75 percent makes JCI corrected," Lucky continued.

Therefore, he argues that the Central Bank of Indonesia should not change the tribe the current benchmark interest rate to calm the panicked players of the capital market

"Do not change means do not raise and lower it should be at only 4.75% because the market has been overshadowed. "Lucky continued, the weakening of the JCI is also a continuation of the market participants' downward response Dow Jones in the Wall Street stock market, where one of the causes of a trade war between the United States and China and Europe.

This afternoon, the three main stock market indices on Wall Street are perched in the red zone. Dow Jones fell 0.68%, the S & P 500 0.86% and Nasdaq Composite 1.54%.

"Dow Jones lost a week," Lucky adds.

Similarly, Harry Wijaya, an badyst at JCI's Danpac Securities is indeed in a downtrend because of the depressed rupee's exchange rate.

Under these conditions, says Harry, if BI raises the reference rate, it is not impossible that IHSG drops to the level of 5.500-5.100. The closest support level to JCI is 5,500, "said Harry.

Interestingly, the amount of foreign funds on the stock market today did not exceed Rs 1000 trillion despite the fact that JCI fell to 2%.

Infokom, market participants recorded net sales (net sales) of 691 Rp, 87 billion dollars, while the number of net sales in the regular market grew to 654 Rp, 06 billion. (lav / lav)