JCI Drops To 6283.36, Analysts: As A Result Of Continuing To Apply China's Import Tariffs

Illustration. (Photo: Pixabay)

JAKARTA - The Composite Stock Price Index (IHSG) at the close of trading Wednesday, January 15 this afternoon fell into the red zone. JCI fell 42.04 points or 0.66 percent to 6,283.36.

At the close of trading, there were 121 stocks rising, 285 stocks weakening, and 137 stocks stagnating. Trade transactions reached Rp7.76 trillion from 12.47 billion shares traded.

The LQ45 index fell 7.24 points or 0.7 percent to 1,025.07, the Jakarta Islamic Index (JII) fell 3.43 points or 0.5 percent to 693.08, and the IDX30 index fell 3.85 points or 0.7 percent to 560.00.

Reliance Sekuritas Indonesia analyst, Lanjar Nafi said, the drop in the JCI was following the weakening of the US stock market. "This is due to the fact that China's import tariffs remain in place even though Trump has signed the first phase of the agreement," Lanjar told VOI, Wednesday, January 15.

Billions of dollars in import tariffs on Chinese products entering the US are likely to remain in effect until the US presidential election in November 2020.

The Trump Administration Agency is working out tariff rules that are likely to block some sales of Huawei Technology in the US. From Asia, investors are waiting for China's reaction to this.

"Investors are worried that the trade agreement will drag on and be used as an excuse for profit taking seeing that the stock price is quite high," he said.

He added, from within the country, the trade balance deficit throughout 2019 amounted to 3.28 billion US dollars with oil and gas exports dropping significantly from the previous year.

At the close of trading this afternoon, stocks that were moving in the ranks of top gainers, among others, shares of PT Northcliff Citranusa Indonesia Tbk (SKYB) rose IDR 21 or 35 percent to IDR 81, shares of PT Limas Indonesia Makmur Tbk (LMAS) rose IDR 39 or 34.82 percent to Rp.151, and shares of PT Yello Integra Datanet Tbk (YELO) rose by Rp.25 or 34.25 percent to Rp98.

Meanwhile, stocks moving in the ranks of the top losers, namely shares of PT Alfa Energi Investama Tbk (FIRE) fell IDR64 or 21.33 percent to IDR236, shares of PT MD Pictures Tbk (FILM) fell IDR24 or 8.33 percent to IDR264 , and shares of PT PP Properti Tbk (PPRO) fell IDR4 or 6.15 percent to IDR61.