Jakarta (Benchmark News) – Technical basis, the condition of the JCI does look not too good. After failing to break through strong resistance area at 5480, JCI even down to penetrate to the bottom support 5296, with the transaction volume increases. Technical indicator Stochastic moving down, while the MACD has death cross.
According to capital market practitioners, Stephen Mulyadi Handoko, this indicates that the condition of the JCI could continue his descent in the short term. “JCI potentially test the area support 5,128 on this week, with the resistennya being in 5,296.0” he explained Sunday (13/2/2016).
At the weekend a sharply weakened the JCI yesterday closed 218.34 points (4.01%) to 5,231.97, dragged down by the weakening of the rupiah. Foreign investors ever do sell action around Rp3 trillion in the regular market. Due to a sharp decline on the weekend, JCI had negative performance throughout the weekend yesterday with dropped by-2.44% followed by discharge of foreign funds amounted to Rp7,97 trillion in the regular market.
The election of Donald Trump as the US President, making the Global economy predicted the more uncertain. Whereas uncertainty or uncertainty in the market, it is the least liked by investors.
Several of Trump policies launched during the campaign, likely would bring the US economy more closed and likely to be protectionist. While campaigning, Trump had ever promised to cancel the trade agreement to the detriment of the US and wear rate on imported goods.
This protectionist policy Trump rated investors will provide a positive impact in the country. But it gives a negative impact on other countries, because it would be detrimental to exporting countries like Indonesia.
In addition, policies Trump all other infrastructure expenditures are estimated to increase intention will make U.S. inflation rises, so will push the Fed rate hikes sooner. It encourages foreign investors out of Indonesia and make the Rupiah had plummeted to as low as 13,800/USD on last Friday, before it finally closed in the range of 13.365/USD on weekends.
The stock market weakened emerging market countries are compact at last week’s post-election us, but the most severe decline is indeed Indonesia stock exchange. Some say that the weakening of Rupiah, the descent of JCI and foreign investors, as fears of political conditions less conducive to Indonesia over the news that there will be a great demo of advanced action on 25 November.
“I myself don’t want to suppose. For a while the weakening of the Rupiah and the decline of the JCI I anticipated because the Trump Effect and anticipation of the fed’s rate hikes in December which was further strengthened. Attenuation later this will end once it reaches the point of a new balance and stabilization of the market begins to take shape, “he explained.
“I also hope the demo action 25 November later if occur, it will end peacefully. As long as the conditions of Indonesia is safe, then decrease or correction that occurs will find a point of bottomnya and will gradually get better again, like the corrections have occurred each year…(Red)