Jakarta, CNBC Indonesia – The Composite Stock Price Index (JCI) was thrown into the red zone at the close of trading session I, Thursday (3/9/2020), continuing yesterday’s correction as investors responded to various sentiments from within and outside the country. Technically in the second session, JCI still has the potential to be corrected.
This morning JCI opened up 0.11% to the level of 5,318.04, but after 10 minutes JCI was thrown into the red zone with a correction of 0.13% to the level of 5,304.81. During the closing session at noon, the JCI was recorded to have weakened 1.34% (-35 points) to 5,209.94.
The market looks still worried about the discourse on eliminating the independence of Bank Indonesia (BI). There is an assumption that this discourse will make the Indonesian financial industry regress to the New Order era where BI operated under the Minister of Finance.
Previously, there was a lot of news about the existence of a Monetary Board, which will be chaired by the Minister of Finance, in the draft bill. The case is that BI will be supervised by the Monetary Board and the provisions concerning “other parties cannot interfere in the implementation of BI duties are abolished.
Foreign investors again scored net sales (net sell), this time worth IDR 224.7 billion in the regular market. The stock exchange transaction value was only Rp 4.3 trillion with 10.6 billion shares traded at 396,245 times. A total of 121 stocks rose, 271 fell, and 167 others were flat.
The main exchanges in the Asian region moved varied. The Singapore STI Index was minus 0.6%, the Shanghai China Stock Exchange Index fell 0.02%, and the Hang Seng Index declined 0.3%. However, the Japanese Nikkei index rose 1.1% and the South Korean KOSPI index added 1.4%.
Technical Analysis
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Photo: CNBC Indonesia IHSG Technical- – |
Movement IHSG by using the hourly period (hourly) of the indicator Boillinger Band (BB) via the upper bound area method (resistance) and lower limit (support). Currently, IHSG is at the lower boundary area with the BB widened again then movement IHSG next limited tends to Tuecorrection.
For meofchange the bias to bullish or reinforcement, it is necessary to pass the level resistance which is in area 5.233. Meanwhile for mixutkan train bearish or decline needs to pass the level support which is in area 5.196.
Indikator Relative Strength Index (RSI) as a momentum indicator that compares the amount of increase and decrease in the current price in a period of time and serves to detect overbought conditions (overbought) above the 70-80 level and oversold (oversold) below level 30-20.
Currently RSI be in the area 31, which shows RSI is approaching saturation indicator sellingbut tsometimes if momentum selling is strong Stochastic could be stuck in the area around oversold in quite a long time.
Meanwhile, the Moving Average indicator Converge Divergent (MACD) which uses a moving average to determine momentum, with indicator MACD in negative territory, it’s a trend IHSG to depreciate.
Overall, through a technical approach with BB indicators located in the area lower limit, then the next movement is likely bearish or corrected. This is also confirmed by the appearance of indicators MACD who are in the negative zone.
The index needs to go through (break) one of the levels resistance or support, to see the direction of further movement.
CNBC INDONESIA RESEARCH TEAM
(trp/trp)
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