Profit Taking on Blue Chip Stock

VIVAnews - There is a potential that investors will engage in profit taking action on Wednesday, April 22, at the Indonesia Stock Exchange (IDX). However, if either the regional or global stock markets gain rebound, the IDX composite stock price index may earn rise.

According to Pardomuan Sihombing, Research Head at PT Paramitra Alfa Sekuritas, the increase in the index has been significant this month so that the investors may involve in profit taking.

However, he acknowledged that if the positive sentiment hits global and regional markets, the domestic index can be affected and has the chance to be up.

Sihombing projects that the Wednesday index will be between 1,600 and 1,650.

Analyst of PT Panin Sekuritas Tbk, Purwoko Sartono said today's index tend to fluctuate.

He said the index is entering an overbought situation, causing investors to take profit.

Sartono said profit taking action has been already aimed at the blue chip stock such as PT Bumi Resources Tbk (BUMI), PT Bank Rakyat Indonesia Tbk (BBRI), TLKM, PT Astra International Tbk (ASII) and PT International Nickel Indonesia Tbk (INCO).

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Translated by: Bonardo Maulana Wahono