Foreigners are considered not to have been affected by the tapering off sentiment, this is the stock that is recommended by analysts

Reporter: Kenia Intan | Editor: The novice Laoli

KONTAN.CO.ID – JAKARTA. Amid the sentiment of reducing monetary policy (tapering off) from the central bank of the United States (US) The Federal Reserve (The Fed), foreign investors are still doing net buying or foreign net buy on the Indonesia Stock Exchange (IDX).

Citing data from RTI Business, over the past month, foreign investors recorded net buy up to Rp 6.22 trillion. As for the last three months, foreign net buy recorded up to Rp 9.89 trillion. The buying action that continues to be carried out by foreigners strengthens foreign net buy to Rp 24.16 trillion since the beginning of the year.

Panin Sekuritas analyst William Hartanto observes, for sentiments that are likely to be postponed, such as: tapering off The Fed, market participants tend not to respond quickly. Therefore, investors are still listing net buy in the middle of the news tapering off The Fed.

Just so you know, the Fed has indeed given a signal that it will do so tapering off since recently. The decision took into account the impact of the Covid-19 pandemic on conditions in the United States which began to improve.

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According to Kontan’s notes, in its last meeting, the Fed said it was possible to start reducing monthly bond purchases after November 2021. The Fed also hinted at a rate hike that may be sooner than expected.

Despite the sentiment tapering off The Fed is increasingly being heard, William predicts foreign investors will still feel at home in the stock exchange. In his view, when the US government stopped quantitative easing (QE), the economic condition is predicted to be more sluggish than Indonesia’s. Given, so far the US economic growth tends to be influenced by the implementation of QE.

” If there is any outflow, maybe even in the United States,” he explained again.

Meanwhile, Sucor Sekuritas Indonesia analyst Hendriko Gani observed that the implementation of tapering off after November 2021 it is still a plan and will still see the development of economic conditions. Tapering off This will be done by considering the economic data for the next two months.

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“If the results are good, then the Fed will tapering off, “he explained to Kontan.co.id, Sunday (26/9).

The Fed’s move, which is still considering the economic conditions, was welcomed by investors. Therefore, foreign investors will still survive and not leave the market.