Jakarta, CNBC Indonesia – The Jakarta Composite Index (JCI) swung into the red zone at the close of trading session one Wednesday (19/8/2020), amidst market players’ anticipation of the national benchmark interest rate policy which will be announced this afternoon.
In the morning, the IHSG Combined Share Price Index (IHSG) was trading early in the week Wednesday (19/ 8/20) opened up 0.2% to 5,312,215 levels but 40 minutes later entered the red zone and continued until it touched the level of 5,277,797 or weakened 17.4 points (0.33%).
All sectoral stock indexes moved lower, except for the agricultural sector stock index, which rose 0.05%. The leader of today’s correction was the miscellaneous industry sector stock index which fell 1.12% or contributed to the JCI correction of 2.7 points.
Foreign investors who posted net sales in the morning (net sell) Rp. 12 billion, at the close of the afternoon session, it still posted a net sale of Rp. 63.45 billion in all markets, and Rp. 38.6 billion in the regular market.
In general, the value of stock exchange transactions reached IDR 4.5 trillion, with 8 billion shares changing hands 418,205 times. A total of 157 stocks rose, 231 fell, and 155 were flat.
Market players are anticipating the decision of the Bank Indonesia (BI) Board of Governors (RDG) to announce the BI-7 Day Reverse Repo Rate. The consensus gathered CNBC Indonesia estimates that the benchmark interest rate will be maintained at the level of 4%.
If the signal that BI will no longer cut interest rates is getting stronger, then the rupiah, which has been in a weakening trend since June 9, has the potential to strengthen again. Banking stocks move mixed.
The main exchanges in the Asian region moved varied. The South Korean KOSPI Index rose 0.5%, the Nikkei in Japan grew 0.2%, and the STI Index in Singapore rose 0.05%. However, China’s Shanghai stock exchange index fell 0.3%.
Technical Analysis
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 in the upper boundary area, the movement IHSG next potentially continue correctionnew.
For meofchange the bias to bullish or reinforcement, it is necessary to pass the level resistance which is in area 5.357. Meanwhile for continuedtkan train bearish or decline needs to pass the level support which is in area 5.212.
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Photo: CNBC Indonesia Technical IHSG- – |
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 60, which shows an overbought indicator however, the movement of the RSI is consolidating down and still not touching the oversold level so usually signifies movement IHSG then it will tend to depreciate.
Meanwhile, the Moving Average indicator Converge Divergent (MACD) which uses a moving average to determine momentum, with MA lines trying to intersect in negative territory, hence the trend IHSG to depreciate.
Overall, through a technical approach with BB indicators located in the upper boundary area, further movement tends to bearish or corrected. This is also confirmed by the appearance of indicators MACD who are in the negative zone and RSI that consolidated down.
The index needs to go through (break) one of the levels resistance or support, to see the direction of further movement.
RESEARCH TEAM CNBC INDONESIA
(trp/hps)
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