IHSG Drowned! Foreign Release BFIN-PGAS, ARTO-LPPF Stock Collection

Jakarta, CNBC Indonesia – The Composite Stock Price Index (JCI) closed lower again on Wednesday (28/7/2021), in the midst of re-escalating tensions between the United States (US) and China which resulted in a severe correction in technology stocks.

The benchmark stock market index of the country closed down 0.12% to 6,088.52 in today’s trading.

Trade data recorded that today’s transaction value fell slightly to Rp 12.5 trillion and it was observed that foreign investors turned to net selling (net sell) of Rp. 143 billion in the regular market. A total of 187 stocks rose, 305 stocks weakened and 158 were flat.

From list net sell, bank shares with ‘jumbo’ market capitalization, namely PT Bank Central Asia Tbk (BBCA) became the most issued by foreigners today, reaching Rp 185 billion.

The following shares were released by foreign investors today.

Temporarily off the list net sell, foreigners are recorded to still collect shares of PT Bank Jago Tbk (ARTO) today. In addition, foreigners are also recorded to have collected shares of listed herbal medicine producers, PT Industri Jamu and Pharmaceutical Sido Muncul Tbk (SIDO).

The stocks collected by foreign investors today are:

The decline in the JCI was in line with the collapse of Asian stock markets in the last few days, especially Hang Seng and Shanghai for the third day in a row, after the Chinese government tightened regulations regarding foreign investment in the education sector and digital companies.

The rules were issued by the State Administration for Market Regulation along with six other administrative departments, including the National Development and Reform Commission, China’s Cyberspace Administration and the Ministry of Public Security.

This also indicates that the geopolitical conditions between the US and China are heating up again, where a meeting of US and Chinese officials yesterday discussed the fate of the administrative region.

Reuters reported that the Chinese side said that relations between the two countries were at a stalemate and facing serious difficulties.

“Fundamentally, the reason is that some Americans portray China as an enemy in their minds,” Chinese Foreign Minister Xie Feng was quoted as saying by the Xinhua news agency.

So far, China has retaliated by tightening the rules for digital companies listed on Western exchanges, especially in the US.

The weakening of the JCI also occurred in line with the attitude of investors who were wait and see from the meeting of the Federal Open Market Committee (FOMC) starting last night (WIB).

This midnight meeting will end and the US central bank (Federal Reserve / The Fed) is scheduled to give a press conference at 14:00 local time, or 02:00 in the morning tomorrow (WIB).

All eyes and ears are on the agenda of the press conference, which usually contains their latest views on US economic conditions, inflation and unemployment.

But this time, the market is waiting for an additional statement about the tapering off or a reduction in the purchase of assets in the market (quantitative easing/ QE).

CNBC INDONESIA RESEARCH TEAM

[Gambas:Video CNBC]

(chd / chd)

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