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JCI Compelled January Effect

Composite stock price index is projected to remain in a bullish trend this year despite foreign selling action dominates trade in the early weeks of January 2017.

In the first week of trading in the stock this year, the composite stock price index (IHSG) January effect factors terdongkrak and stretching construction and mining stocks so closed up 1.35% of closing the end of 2016 to as low as 5,347.02 on Friday (6/1).

Reflections of visitors see the movement of the JCI. -JIBI/Dwi Prasetya
Edwin Sebayang, Chief Research MNC Securities, said this weekend the JCI has yet to move with full force because there are still many investors and investment managers are still on leave.

“The Market has yet to full power, but the JCI has gone up 1.35%. I see there are January Effect and boosted some stocks are still cheap, valuasinya such as mining and construction sector seems to be a nice performance, 2017 “he said.

All this week, the total transaction broker in the stock market reached IDR 21,03 trillion, with the total volume of shares as much as 34.1 billion shares and trading frequency as much as 1 million times.

Three of the most active stocks traded along the 3-6 January 2017, i.e. the Earth’s Resourses shares of PT Tbk. as much as 3.9 billion shares with a total transaction value of IDR 1,2 trillion, shares of PT Telekomunikasi Indonesia Tbk. as much as 258.2 million shares worth IDR 1 trillion, and shares of PT Astra International Tbk. as much as 112.5 million shares valued at Rp909 billion.

High transaction pushed the shares skyrocketing 19.12 EARTH% to as low as IDR 342 per share at the close of trade Friday (6/1). Significant increase in continuing the EARTH stake from IDR 50 per share price level to IDR 278 at the close of trade Friday (30/12)% 497, or skyrocket over the past year.

According to Edwin, the stock earth moving is not based on fundamental factors. The hunt for stocks of the Earth, he said, are affected by the issue of a debt conversion plan into stocks, rising prices of coal, and the increase in the volume of sales on the basis of the contract.

“I Hope the three things that come along to make the EARTH a fundamentally improved. In addition, there are rumors of the EARTH want its shares rose to IDR 370 per share so that the market capitalization to US $1 billion so that more and more investors are coming in, “he said.

Lincahnya the movement of the EARTH’S stock, he said, can be promoted against mining issuers have similar characteristics, for example the world Prosperous Delta PT Tbk. and PT Darma Henwa Tbk.


On the first weekend of January 2017, foreign investors registered a net sale of action worth IDR 362,05 billion. Edwin judge slack interest foreign investors to buy up shares on the trading floor is impacted by foreign exchange risks and the potential increase in Fed Funds Rate three times this year.

Foreign investors who are already acquainted with the Indonesia capital market and not have the US dollar denominations of bank loans in large quantities in the U.S. capital markets enliven back projected this year. Thus, the net sell foreigners are expected to continue to shrink. Even on Friday (6/2), foreign net buy had already amounted to Rp127,16 billion.

“Market tested next week when the market is already full of power. Monday (9/1), it is likely the index will rise again because the three outside up pattern is formed, “said Edwin.

Shares of the mining sector ADRO, ITMG, and BBCA HRUM, the banking sector and the consumer sector BBNI, AISA, JPFA, and CPIN, as well as the construction sector WTON PTPP and become stock recommendations on next week.

MNC are projected JCI Securities at the end of 2017 will be moving towards a pessimistic scenario 5,285 level, 5,620 on moderate scenario, and optimistic scenario at 5,950. Earnings per share (EPS) in the capital market is estimated to be IDR 330,33 with PE 18 times on the optimistic scenario.

“Local investors this year are expected to show more teeth. The index is likely to rise gradually, unlike last year’s ride fast because the lure of the repatriation tax amnesty, ” that he says.

Contacted separately, head of Research at PT Universal Broker Satrio Utomo said Indonesia movement composite stock price index (JCI) on the first weekend 2017 is quite good in the middle of the market conditions that await the condition of regional and global stock exchanges.

The negative sentiment from external pressure still could be muted, so the index can still climb. “All investors are still cautious and waiting for the global regional exchange conditions. Despite going on the net sell foreign, also relatively small in number, “he said.

Meanwhile, the rupiah ended the week trading with attenuation thin 0.03% or 4 points to a position IDR 13.371 per u.s. dollar after trading at IDR 13.323 range – IDR 13.395 per u.s. dollar and the central exchange rate pegged at IDR 13.347 per us dollar…(Red).

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