Panic Investors! It turns out that this is what makes the JCI drop badly

Jakarta, CNBC Indonesia – The Composite Stock Price Index (JCI) started trading this week with a 1.33% correction at the level of 6,992.23, Monday (13/6/2022). In fact, the JCI had weakened more than 2% during the first trading session today.

Associate Director of Pilarmas Investindo Sekuritas, Maximilianus Nico Demus said the correction was caused by inflation in the United States (US) and ahead of the Fed meeting.

“Some of the causes of today’s correction are due to several things, such as the increase in the Fed’s interest rate, the increase in the US Treasury, and the potential for a recession,” Nico explained to CNBC Indonesia, Monday (13/6/2022).

Nico predicts this will subside on Friday, after the US central bank the Fed will announce its monetary policy on June 15 local time.

“Probably subsides on Friday because the Fed meeting will be a lot of people’s attention,” Nico said.

NH Korindo Sekuritas analyst, Dimas Wahyu assessed, the sentiment came from the US. US inflation rose to 8.6% in May and was above expectations (it was estimated that 8.5% was already at its peak in March), prompting the Fed to be aggressive and take a more aggressive stance. hawkishby raising the Fed Rate on 15-16 June.

“The next FOMC is estimated that the Fed Rate will rise by 50 bps. This will also create deep pressure on the American stock market,” said Dimas.

Dimas also said that for the JCI itself at the beginning of the opening it happened panic sellingand is currently in the consolidation area.

“It is hoped that the closing can return to closing above 7,000, this is an opportunity for the accumulation of big cap stocks that have fallen, one of which is banking,” said Dimas.

The US stock market posted a sharp correction last week. by point-to-point Last week, the Dow Jones Industrial Average (DJIA) fell 4.58%, the S&P 500 fell 5.05%, and the Nasdaq Composite fell 5.60%.

On Friday (10/6) trading last week, the three major indexes ended significantly corrected, in which the Dow Jones Industrial Average (DJIA), S&P 500, and Nasdaq Composite fell 2.73%, 2.91%, and 3. ,53%.

Selling pressure occurred due to the release of the latest inflation data. In May 2022, inflation in Uncle Sam’s country was recorded at 8.6% compared to the same period the previous year (year-on-year/yoy). This is the highest on record since 1981.

[Gambas:Video CNBC]