JCI will be hit by the Asian stock market

Jakarta, CNN Indonesia – The correction of the Asian stock market should affect the movement of the composite price index ( IHSG ) at the end of this week, Friday (6/7) .

According to observers Capital Market Association Reza Priyambada, an badyst of Indonesian securities, believes that the weakening of the Asian stock market comes against the US stipulation of customs duties on Chinese goods.

"Market participants are also not reviewed, tend to refrain from addressing existing feelings," he said in his research.

Several Asian stock indexes were down yesterday, including the Nikkei 225 in Japan of 0.78%, Hang Seng of Hong Kong 0.21% and Kospi in South Korea of ​​0.35%.

In addition to regional factors, other negative sentiments are still from the interior of the country in the form of the weakening of the rupee against the US dollar.

Again, the closed rupee almost touched the Rp14,400 number per US dollar yesterday. More details, the rupee fell by 0.22% to 14,394 Rp for a US dollar.

"The ever-changing market sentiment is expected to affect the pace of the market in the future," said Reza.

Thus, Reza predicts today JCI is moving in the support range 5.618-5.723 and the resistance 5.748-5.773.

Meanwhile, Juan Oktavianus Harahap, an badyst at Artha Securities, believes that the anticipation by market players of a decrease in foreign exchange reserves from June 2018 will be a negative sentiment for the stock market this weekend.

Because, since February 2018, foreign exchange reserves continue to decline as Bank Indonesia (BI) uses it every month to stabilize the depreciated rupee against the US dollar.

"The IHSG should weaken as investors anticipate data from foreign exchange reserves," added Juan.

BI recorded foreign exchange reserves of only US $ 122.9 billion in May 2018. This number fell to US $ 2 billion from the previous month of US $ 123.9 billion.

It is therefore likely that market participants are still hesitant to buy today. Thus, Juan projected JCI to move only in the support range of 5,703 and resistance of 5,757.

Meanwhile, JCI closed up 5.69 points or 0.09% to 5.739 after it moved between 5.685-5.739. However, foreign market participants recorded a net sale of 108.56 billion rupiahs.

The same conditions occur on the Wall Street Stock Exchange. The majority of the index closed higher last night, while the Dow Jones rose 0.75%, the S & P500 0.86% and the Nasdaq Composite 1.12%

( beer)