Jakarta, CNBC Indonesia – Composite Stock Price Index (IHSG) paand trading at the weekend on Friday (4/9/20) at 09:40 WIB subsided 1.09% to the level of 5223.31 after falling below the psychological level of 5,200 at 5,188.60 or a decline of 1.74%.
At 10.06 WIB, JCI fell 1.29%.
However, what stocks actually cause the drop in the national reference index?
Consider the following table.
Again, PT Bank Central Asia Tbk (BBCA) is the main driving force for the decline in the JCI today, although it only depreciated by 2.00%, BBCA managed to drive the JCI down by 14.2 points due to BBCA’s very large market capitalization. BCA capitalization reaches Rp. 786 trillion.
Compare with the second position of PT Bank Rakyat Indonesia Tbk (BBRI) which fell by 1.12% and only managed to suppress the JCI by 4.3 points.
It can be seen from the table above, of the 5 market down movers today 3 of them came from the banking sector.
Therefore, the sector that caused the JCI to drop below 5,200 was the financial sector, the financial sector index itself fell 1.50% this morning.
The INFOBANK15 banking sector index fell even more by 1.59%
The cause of the JCI collapsing due to the correction of banking stock prices makes sense, because the backbone of the JCI has always been the financial sector because this sector is inhabited by market capitalization giants so the JCI will rise or fall depending on this sector.
The banking sector itself has the largest proportion in the JCI, which is 33%, far above the second largest sector, namely consumer goods which only weighs 8%.
The decline today was due to investors responding to the world’s benchmark stock market, namely the United States (US), whose main reference index collapsed.
The Dow Jones Industrial Average closed down 807.8 points (-2.8%) at 28,292.73, becoming the biggest daily correction since June 11. The Nasdaq tumbled 5% to 11,458.1 and the S&P 500 shed 3.5% to 3,455.06.
CNBC INDONESIA RESEARCH TEAM
(trp/trp)
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