JCI Drops 1.7%, Turns Out Foreigners Sell These 5 Big Cap Shares!

Jakarta, CNBC Indonesia – When the Composite Stock Price Index (JCI) fell by 1.7%, foreign investors flocked to sell stocks with large market capitalizations (big cap) at the continuation of trading session I on Tuesday (25/1/2022).

According to data from the Indonesia Stock Exchange (IDX), at 10.33 WIB, the JCI plunged 1.71 percent to 6,541.63, with a transaction value of Rp 5.84 trillion and a trading volume of 11.66 billion shares. Foreign investors were noted to have left the Indonesian stock exchange with a net sell value of Rp 122.09 billion in the regular market.

Here are 5 stocks big cap the most sold foreign this morning.

1. Bank Rakyat Indonesia (BBRI), down -1.70%, to Rp 4,050/unit. Net sell Rp 86.3 M

2. Bank Central Asia (BBCA), -1.60%, to Rp 7,675/unit. Net selling IDR 78.9 M

3. Bank Jago (ARTO), -5.31%, to Rp 17,375/unit. Net selling IDR 53.1 M

4. Bank Negara Indonesia (BBNI), -3.52%, to Rp 6,850/unit. Net selling IDR 15.5 M

5. Unilever Indonesia (UNVR), -1.23%, to Rp 4,030/unit. Net selling IDR 5.9 M

Shares of state-owned bank BBRI fell 1.70% amid a net foreign sell-off of Rp 86.3 billion, the highest on the stock exchange this morning.

With this, in a week, BBRI’s shares fell 3.10% and since the beginning of the year they have weakened by 1.22%.

The latest news, BBRI planning to repurchase (buyback) the company’s shares with a nominal value estimated at Rp 3 trillion.

According to information disclosure published in website IDX, action buyback conducted through the IDX, either gradually or all at once, and completed no later than 18 months from the date of the 2022 Annual General Meeting of Shareholders (AGMS).

With this, the estimated period buyback BBRI will be held in the range of March 1, 2022 to August 31, 2023.

The plan, share the results buyback This will be used for the share ownership program of BBRI employees and/or Directors and Board of Commissioners.

Shares of the bank with the largest capitalization on the stock exchange, BBCA also fell 1.60% to Rp 7,675/share, in line with foreign selling of Rp 78.9 billion this morning.

Meanwhile, among others, ARTO’s shares were the weakest, at 5.31 percent, as foreigners sold these shares to Rp 53.1 billion.

The movement of the JCI followed the Asian stock market which was on ‘fire’ today. Nikkei index led the decline with a correction of 2.03%.

Meanwhile, the three main indexes of the US stock exchange or Wall Street rose together in trading earlier this week.

The stock market of the United States (US) weakened at the opening of trading Monday (24/1/2022) and touched its lowest position since last year.

However, the Dow Jones index rose and closed at 34,364.5, up 0.29%. Then the S&P 500 index rose 0.28% to 4,400. Then, it was the Nasdaq Composite that edged up 0.63% to 13,855.1.

Another sentiment came from the Fed’s meeting on monetary policy which will be announced on Wednesday (26/1/2022) local time. Investors are worried about how many times interest rates will be raised by the Fed this year and when the hikes will start.

Goldman Sachs projects a fourfold increase this year. However, the investment bank sees a risk that interest rate hikes will be more than that due to a spike in inflation.

An increase in interest rates in the US could have an impact on the flow of foreign funds out of Indonesia. It is expected that there will be a slight shock in the Indonesian financial market. Although not as bad as it was in 2013, because of Indonesia’s stronger economic fundamentals.

Therefore, investors are expected to behave wait and see alias waiting for the Fed meeting to finish to get a signal on the US interest rate hike agenda.

In addition, the increase in the daily number of Covid-19 cases overshadowed the JCI rate.

Investors are focusing on the development of the Covid-19 pandemic in the country, where the daily Covid-19 infection cases have increased almost 10x since the beginning of the year. As of January 24, Indonesia’s daily number of Covid-19 cases was recorded at 2,927 people.

CNBC INDONESIA RESEARCH TEAM

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