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Jakarta, CNBC Indonesia – Stock prices on the national capital market skyrocketed today, Thursday (11/5/2020), and pushed the Jakarta Composite Index (JCI) into the green zone. Without palliative, the benchmark stock index of the national stock market flies more than 3% a day.
For the first time this week, foreigners are finally on the list Net purchase or net purchase of Rs 929.31 billion on the regular market, while on the tradable and spot markets there was a net sale of Rs 241.50 billion.
IDX data shows that the value of the transaction reached Rs 9.64 trillion with the strengthening of 320 shares, the fall of 140 and the stagnation of the remaining 150 shares.
The current sentiment of market movement is coming from inside and outside. From abroad, the US presidential elections are still under the spotlight of global market players, including domestic ones.
So far, Joe Biden of the Democratic Party goes ahead with 72 million popular votes and 264 electoral votes leaving his Republican rival Donald Trump and the incumbent with 68.6 million popular votes and 214 electoral votes.
According to analysts, Joe Biden’s victory will benefit emerging markets (emerging market). All because of the US dollar. When Biden wins, the position of the US dollar will likely weaken.
Historically, the strength of the US dollar will greatly influence the valuation of financial assets in countries. emerging market. When greenback weakened, investors often withdraw money from the US and put it in the country emerging market and raise the price of your financial assets.
Launch of the Financial Times, Gary Greenberg as editor emerging markets In Federated Hermes it says the blue wave or phenomenon when the executive, the parliament and the Senate will produce a federal stimulus package larger than the one that the Trump presidency will deliver.
This will not only lead to a weaker dollar, he said, but also to stronger US growth. This will be another added value for emerging markets, especially for base metal exporters like Peru, South Africa and Indonesia, as well as for cyclical economies like Chile, South Korea and Mexico, Greenberg continued.
“With the blue wave we will begin to see global confidence begin to build. US policy will become more predictable and rational,” Greenberg added.
Mr. Robertson believes that the Biden-induced dollar weakness will allow central banks in developing countries to keep interest rates low, contributing to growth.
Meanwhile, more predictable trade policies will make companies feel more confident about investing in developing countries.
From inside the country, today the Central Statistics Agency (BPS) announced the announcement of sacred figures, that is, national economic growth. At a press conference at 11.00 WIB, BPS announced that national GDP growth for the third quarter grew by 5.05% (quarter-on-quarter) and minus 3.49% (year-on-year).
The contraction of two consecutive quarters based on the annual period turns RI into a legal state of recession. Even though the recession has seen an economic improvement, it is a good capital to navigate in the fourth quarter economy that is currently underway.
With reference to BPS data, all of the country’s commercial sectors registered quarterly growth. Even for sectors with a strong contraction, such as transport and accommodation, food and drink grew double digits above 10% (qoq).
Public consumption, although it continues to contract compared to last year, also improved yesterday in the third quarter. On the other hand, the government is also aggressive in spending its budget.
The hundreds of trillions of stimulus released by the government along with the easing of the PSBB have started to increase consumer confidence, so the wheels of the economy have improved.
The market is tilting Looking forward it even took this into account and caused massive purchases, especially by foreigners, in assets of national capital as seen today.
It’s just that there is still a huge risk to face, especially with the American elections that cannot be said to be over. Various problems that pose a risk of uncertainty still persist, such as Trump’s speech that he will challenge the electoral results and call for the temporary suspension of the count.
It is estimated that the vote counting will take days, even weeks, given the complexity of the problem and the Covid-19 pandemic that has changed the technical scheme.
Not all Americans who cast their votes went directly to the polling stations (TPS), but some did send them by mail.
On the other hand, Europe and other parts of the world are also facing the second wave of Covid-19. Several countries on the Blue Continent, such as France, Spain, Germany, England, and Italy, again implemented strict restrictions to prevent the Covid-19 infection from spreading.
Therefore, the significant increase in JCI today tends to reflect more instantaneous sentiment and high volatility. After all, yesterday when the Asian capital market was tight green, JCI collapsed on its own with a correction of more than 1%.
Yes, to put it simply, IHSG’s revenge today. JCI is also compact green with other Asian financial markets. It’s just that the flow of foreign capital coming in today can still go out at any time. Everything again influences the feeling.
CNBC INDONESIA INVESTIGATION TEAM
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