The Fed plans to start tapering off at the end of November 2021, pay attention to these stocks

Reporter: Kenia Intan | Editor: The novice Laoli

KONTAN.CO.ID – JAKARTA. The Federal Reserve (The Fed) announced it would reduce bond purchases or tapering off starting at the end of November 2021. As a first step, bond purchases will be cut by US$ 15 billion per month from the current purchase value of US$ 120 billion per month.

Responding to this, FAC Sekuritas Indonesia Research Analyst, Patrick Jorghy Manek, revealed, tapering off to the stock market will not be significant or minimal. Remember, news tapering off has been blowing since the beginning of the year.

With this information, Patrick sees that market participants tend to be more prepared to face tapering off this time.

“Market participants have projected or thought that policy tapering off This will one day be realized, as can be seen from the US inflation data in recent times,” he explained to Kontan.co.id, Thursday (4/11).

Also Read: Stocks that were mostly sold by foreigners when the JCI closed higher on Thursday (4/11)

For the short term or short term, the outflow of funds or capital outflow it will happen, so the market will be consolidated because there is an adjustment.

However, the impact will not be as deep as it was in 2013. At that time, foreign investors tended to dominate up to 70%. Unlike today, domestic investors tend to dominate.

“Even if there is consolidation, it can be used to buy on weakness stocks that have good performance,” he said.

For the medium and long term, the impact of this sentiment is not significant or minimal. Bearing in mind, the stock exchange has a series of other positive sentiments that are more influential, such as vaccinations that continue to increase, the number of Covid-19 cases that can be suppressed, as well as reports from third quarter financial issuers, which are mostly improving.

The stock exchange also has positive sentiment in the form of: window dressing towards the end of the year.

Taking this into account, market participants are advised to pay close attention to stocks that have the potential to experience window dressing at the end of the year such as BBRI, BBNI, BBCA, TLKM, and ASII.