Foreign outflow increases, IHSG likely to weaken again
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JAKARTA – Jakarta Composite Index (JCI) is likely to weaken again in Thursday's (20/2) trading session, following an outflow of foreign investor capital.
Analysts at CGS International Sekuritas Indonesia noted that Bank Indonesia's (BI) decision to maintain the benchmark interest rate at 5.75% yesterday has also contributed to the foreign outflow from the capital market. This decision is even seen as a potential negative catalyst for JCI.
“JCI is predicted to fluctuate but tend towards weakness, with support levels at 6,715/6,635 and resistance at 6,875/6,955,” CGS International Sekuritas Indonesia analysts wrote in their research report.
Meanwhile, analysts at Phintraco Sekuritas noted that, from a technical perspective, the JCI remains in an overbought area, which suggests the potential for further weakening.
“Therefore, we expect the JCI to test the support area of 6,750-6,725 on Thursday (20/2),” Phintraco analysts wrote in their research.
According to IDNFinancials.com data, JCI weakened by 1.14% to 6,794.87 in Wednesday's trading. Foreign investors remained dominant with their sell-offs, recording a net foreign sell of IDR 1.13 trillion. (KR/ZH)