Behind the zeal of foreign investors hunting for shares on the IDX in the last few days

Reporter: Akhmad Suryahadi | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. Foreign investors began hunting for stocks on the Indonesia Stock Exchange (IDX) since early November 2020. This has made the Composite Stock Price Index (IHSG) happy again.

Citing RTI, this week the index has strengthened 4.04%. On Friday (6/11) alone, IHSG closed up 1.43% to the level of 5,335,529.

Not only that, the JCI has also begun to be attracted by foreign investors. Foreign net buy (net buy) in the regular market also reached Rp 894.96 billion on Friday, while if accumulated in all markets the amount reached Rp 827.79 billion. In fact, the total net buy in all markets this week reached Rp 1.2 trillion.

So, what made foreign investors enter the stock market?

Also Read: IHSG went green last week, what about next week?

Panin Sekuritas analyst William Hartanto assessed that the net buy made by foreigners shows that foreigners have made purchases and taken positions in the domestic stock market. William suspects that the cause of the influx of foreign funds is Joe Biden’s victory in the United States (US) Presidential Election.

“I think the cause is Biden’s victory which has the potential to end the trade war so that emerging markets will be attractive again,” William told Kontan.co.id, Friday (6/11).

William agreed that Biden’s victory in the contest for the Presidential Election in Uncle Sam’s country was at the same time ending the uncertainty that had hovered over the market due to the maneuvers that Donald Trump created during his reign.

Also Read: These are the 10 stocks with the largest foreign net buy and sell in a week