JCI Opens Lower, Rupiah Gains Slightly On Thursday

Jakarta (Antara Bali) - The Jakarta composite index (JCI) extended losses on Thursday on absence of positive sentiments internally and externally.

The index of the Indonesian Stock Exchange (BEI) opened 17.63 points  or 0.35 percent lower  at 5,087.92 points with index of 45 most liquid stocks down 0.51 percent to 872.80 points.

"The pressure on JCI continues with accumulation of negative sentiments in the domestic and global  markets, chief researcher of Valbury Asia Securities Alfiansyah said here .

He said corrections in the European and US markets weighed on the regional markets in Asia including Indonesia.

The corrections in most markets followed statement by the Fed giving signal that an increase in its fund rate was possible in the next several months, he said.

Meanwhile, the market players tended to be pessimistic  with the growth of the country's Gross Domestic Product (GDP)  in the first quarter of this year.

Economic slowdown  and uncertainty over the Fed's decision on its fund rate contributed to JCI fall.

Technical analyst from Mandiri Sekuritas Hadiyansyah  said technically JCI already crossed the estimated lowest limit that could prevent further fall  that there is potential technical rebound.

"JCI  and almost all shares are almost oversold , that the probability of technical rebound is high. Even if declining ti would limited," he said.

Regional markets such as  Hang Seng,Nikkei  and Straits Times recorded a decline in indices.

Meanwhile, the Indonesian currency rupiah in interbank transactions on Thursday morning gained slightly trading at the level of 12,921 per US dollar from earlier level of 12,930 per dollar.

Economist from Samuel Sekuritas Rangga Cipta said US economic growth being below estimate was one of the factors weakening the US dollar in the global market.

"The US GDP grew only 0.2 percent  in the first quarter of 2015, below growth of 2.2 percent in the previous quarter  nand lower than earlier estimate of 1 percent," Rangga said.

However, despite the sluggish GDP growth , the Federal Open Market Committee (FOMC) signaled an increase in the Fed fund rate later this year.

"The Fed Governor Janet Yellen is still confident that the US economy is still on the right track toward reaching long term target shortly, that the possibility of an increase in the fund rate is still open," he said.

In Indonesia, Bank Indonesia still seek to supply dollar to the domestic market to maintain rupiah stability, he said. (WDY)