IHSG comes under pressure to hit psychological level of 6,000

IHSG comes under pressure to hit psychological level of 6,000

Illustration - An investor monitored share trading on his gadget in Jakarta ANTARA FOTO/Akbar Nugroho Gumay/wsj.

In my opinion, the decline in IHSG is still a natural correction, as it had risen quite fast since September 2020. Moreover, there is resistance in the area of 6,400.
Jakarta (ANTARA) - The Jakarta Composite Index (IHSG) came under pressure for four consecutive days to hit a psychological level of 6,000 on Thursday.

The index of the Indonesian Stock Exchange (BEI) closed 129.78 points lower, or 2.12 percent, to reach 5,979.39, while the index of the 45 most liquid stocks (LQ45) slid 22.62 points, or 2.35 percent, to touch 940.52.

"In my opinion, the decline in IHSG is still a natural correction, as it had risen quite fast since September 2020. Moreover, there is resistance in the area of 6,400," Foster Asset Management analyst Hans Mulyadi Irawan stated in Jakarta on Thursday.

Based on the sentiment analysis, the weakening IHSG was fueled by the domestic COVID-19 caseload that hit a record of over one million, the International Monetary Fund (IMF) report that slashed its forecast for Indonesia’s economic growth, and the weakening global and regional stock exchanges, Irawan pointed out.

Irawan has forecast the IHSG to still likely strengthen at the weekend.

"At this moment, it lacks positive sentiment. However, if (we) look at it graphically, there is a support gap in the area of 5,820. Should it weaken, it will not be too bad. The IHSG has fallen for the six consecutive time, so it has a possibility to rebound in the area," he stated.

Shortly after opening lower on Thursday, the IHSG remained in the red until the close of trade.

Stocks in eight sectors recorded a correction, with the infrastructure sector deepening its slide by minus 4.19 percent, followed by the raw material sector and the energy sector at minus 3.65 percent and minus 3.39 percent, respectively.

Stocks in the technology sector and the industrial sector rose 8.57 percent and 0.47 percent each.

Thursday's trade posted net foreign buys of Rp52.49 billion.

A total of 1,307,430 transactions were recorded during the day, with 16.76 billion shares, worth Rp16.24 trillion, changing hands. Meanwhile, 81 shares rose, 427 shares fell, and 118 shares remained unchanged.

In the Asian regional markets, the Nikkei Index weakened 437.79 points, or 1.53 percent, to 28.197.42, the Hang Seng index declined 746.76 points, or 2.55 percent, to 28,550.77, and the Straits Times Index plunged 40.57 points, or 1.37 percent, to 2,918.06.

Related news: IHSG slides as regional markets weaken
Related news: COVID-19 concerns drag down IHSG

Comments