Jakarta, CNBC Indonesia – Bright clouds are starting to darken the Indonesian financial market. The Composite Stock Price Index (IHSG) is still in the red zone. However, the rupee exchange rate recovered from the slump, while government bonds (SBNs) once again attracted investor attention.
The threat of recession still haunts global markets, but good news from the United States (US) stock market and expectations of an easing of interest rate hikes from the Fed (the central bank of the United States) should immediately revive the JCI today.
A number of sentiments and factors influencing today’s market movements will be discussed on pages 4 and 5.
As of yesterday’s (8/12/2022) close of trading, the JCI closed down 14.53 points or 0.21% at 6,804.23. Yesterday’s weakening also extended the JCI’s downtrend. The Indonesian stock has weakened over the past six trading days with a total weakening of 3.07%.
This six-day weakening is first seen from October 7-14, 2022.
A total of 226 stocks rose, 316 stocks weakened while 156 remained stagnant. The counter value recorded yesterday reached IDR 15.2 trillion and involved 23.1 billion shares.
Register of Foreign Investors net sale equal to Rp 2.02 trillion or far higher than the previous day which was recorded at Rp 1.68 trillion.
Energy and consumer staples were the main drivers of JCI weakening today by 2.50% and 0.80% respectively.
Once again, shares of technology issuers weighed on the JCI move, weakening 0.89%. The healthcare sector decreased by 0.79%, while primary consumption decreased by 0.64%.
One of the stocks with the steepest decline was PT Gojek Tokopedia Tbk (GOTO). In yesterday’s trading, GOTO shares fell 6.54%. Thus, the stock fell for 14 consecutive trading days with a total weakening of 54.9%.
In response to their stock plummeting, GOTO management held a press conference yesterday. According to them there are three reasons why GOTO’s shares plummeted after the period lock up. GoTo Group President Patrick Cao explained after the period blockthere is an increase in the number of shares outstanding on the market, which translates into an increase in share purchase and sale transactions.
This could be due to a number of reasons, among other things, early investors who entered at a lower share price made profits. So, the end of the investment period or finance life for financial investors, and year-end liquidity needs or other liquidity needs.
JCI also corrected due to the growing threat of a global recession due to tight monetary policy. Several CEOs of multinational institutions have warned of the threat. For instance, Bank of America CEO Brian Moynihan estimates that the US economy will contract in the first to third quarters of next year before growing positively in the fourth quarter of 2022.
