JAKARTA. The index of sharia shares scored a higher increase compared with the Jakarta Composite Index (JCI). Along this year, Jakarta Islamic Index (JII) increased by 22.80%, while Indonesia Sharia Shares Index (ISSI) increased by 24.21%. During the same period, the Jakarta Composite Index (JCI) increased by 19.11%.

Analyst at the Association of Indonesian Stock Exchange Analyst (AAEI) Riza Priyambada said that the increase was caused by the expansion of mining shares to the sharia index. According to Reza, recently mining shares are bullish and influencing the sharia index.

Some of JII members, which recorded the highest increase in shares, are mining issuers, such as PT Tambang Batubara Bukit Asam Tbk (PTBA).

PTBA was listed on sharia stock exchange in June 2016, along with PT Surya Citra Media Tbk (SCMA), replacing PT Matahari Putra Prima Tbk (MPPA) and PT Indo Tambangraya Megah Tbk (ITMG).

There are 30 shares listed on JII stock exchange. The sharia index has a worth of IDR2,191.72 trillion of capitalization, or 37% of JCI’s market cap. Reza said that the issuer of JII is the shares with a large number of shares outstanding. Therefore, the increase was purely driven by market mechanism, not due to fewer shares outstanding.

Analyst at First Asia Capital David Sutyanto said that the shares composition of the sharia index members has significant impacts to the return. “Along this year, the shares of banking sector tend to be suppressed, while the shares of mining sector tend to increase”, he said.

David added that JII is similar with the JCI. Unlike other indexes, JII does not focus on a certain sector. Therefore JII goes along with JCI in terms of the prospect, which is dominated by a macro, even global scale condition.

On the global side, the current sentiment is still dominated by the US (the United States of America) presidential election. So far market is still in favor of Hillary Clinton to be the new president of the US.

At the same time, JCI gave positive sign by hitting the psychological level at 5,400. However, David added that JCI does not necessarily directly reach 6,000 if Clinton wins, on the grounds that JCI will still affected by domestic factors. At least, David is still optimistic that JCI may hit the level of 5,600.

Reza said that the sharia index has positive prospect. Despite the movement of sharia index was mainly driven by mining sector, it does not necessarily depend on this sector.

Therefore, the index will be backed up by other sectors, such as construction sector, when the bullish in mining stocks ends. “At least, the sharia index may facilitate and be an alternative for investors in selecting the shares in a more specific manner”, Reza said.

(Muhammad Farid/Translator)

Editor: Barratut Taqiyyah Rafie