Investors focus moves to domestic

Monday, 15/02/2010 00:00 WIB

Irvin Avriano A. & Arif Gunawan S.

for Bisnis Indonesia

Investors focus moves to domestic

JAKARTA: Investor at domestic bourse is predicted to more the sentiment focus on the domestic following the betterment of global investor sentiment in relation to the Greek debt settlement.

The Jakarta Composite Index (JCI) is suspected to enter the consolidation trend this week while waiting for the following positive sentiment.

Research analyst of PT Panin Sekuritas Tbk Purwoko Sartono said the index might test the psychological level of 2,560 prior to the following trend direction after the rebound transaction last week.

"This wee, we assume the index moves to consolidation of aside. JCI will test the psychological level of 2,560 and political situation still comes after the bourse this week," he said last week.

At global bourse, trend of bourse last week showed the indication of global investor trust recovery when the blue chips rebound such as Shanghai index growth of 1.09 percent, and Nikkei-225 rose 1.29 percent.

JCI was rebound in Thursday and Friday with the two consecutive days rise by 2.02 percent into the level of 2,534.137. The commodity sectors like mining and plantation came up last week with the increase of 2.07 and 0.97 percent.

Formerly national index fell down following the correction happened to regional bourse amidst the fear of the default of Greece, Spain, and Portugal which might trigger a worsening recession.

Bloomberg data shows the fear has slashed down the stock and commodity investment. On contrary, US dollar finance market was rebound.

Dollar index which recorded the currency against six leading exchange rates worldwide rose into 80.75 or the highest since June.

Purwoko said the commitment of European leaders to help ease Greece has cooled down the negative sentiment of the global bourse. "Investor trust has been recovered after two week crisis of Greece debt which potentially affects other European Union countries," he said.

In turn, domestic political party might become the investors concern. The JCI will go along with the progress growing from fundamental point of 2,511 into resistant point of 2,559 in the first day of this week.

Division head of Fixed Income of PT Anugerah Securindo Indah Ramdhan Ario Marutho said the government bond (SUN) market will plunge slightly this week and climb up the yield by 10-5 basis points (bps).

The price correction is affected by the global market condition and Chinese New year holiday yesterday.

"Early this week will remain static and not high as our client abroad mostly will enjoy vacation. It is declining noting that the global negative sentiment has not cooled down yet," he said yesterday. (Bisnis/ags/iaa)