Jakarta, CNBC Indonesia – The Jakarta Composite Index (JCI) closed lower in trading last Friday (20/11/2020) at the level of 5,571.66 or minus 0.40% amidst the start of net selling by investors.
Trade data noted, even though there was a correction on Friday, on a weekly basis, the JCI was able to strengthen 2.03% and in the last month rose 9.25%. In fact, in the last 6 months, the main reference index of the Indonesia Stock Exchange (IDX) has increased by 21%.
Even though it fell during the day, the Indonesian stock exchange was indeed experiencing one of the best weeks of the year, amidst the decision by Bank Indonesia (BI) to cut its benchmark interest rate to its lowest level, 3.75%.
Regarding foreign buying, on Friday’s trade, there was a net sell of IDR 558.78 billion in the regular market. Coupled with the cash and negotiable markets, a total of Rp. 433.69 billion in a day occurred because negotiable transactions and reaping reached Rp. 115.09 billion.
Even though there was a net sell a day, in a week, foreigners were still recorded as net buying, namely Rp. 435.09 billion in the regular market, and Rp. 624.59 billion in the negotiable and cash markets. Thus, the net buy a week reached Rp 1.06 trillion.
Here are the Top 10 Foreign Purchased Shares (16-20 Nov)
1. Bank Central Asia (BBCA), net buy Rp 1.3 trillion, + 3.29% shares Rp 33,000
2. Telkom (TLKM), Rp 723.2 billion, + 7.69% shares, Rp 3,220
3. Merdeka Copper Gold (MDKA), Rp 265.7 billion, + 2.75% shares Rp 1,865
4. Sarana Menara (TOWR), IDR 99.4 billion, + 3.52% shares of IDR 1,030
5. Vale Indonesia (INCO), Rp 79 billion, + 4.11% shares Rp 4,560
6. Indofood CBP Sukses (ICBP), IDR 74.3 billion, shares + 10,100
7. Matahari Department (LPPF), Rp 33.2 billion, + 16% shares Rp 1,050
8. Semen Indonesia (SMGR), Rp 7.3 billion, + 1.34% shares, Rp 11,350
9. Steel Pipe Industry (ISSP), Rp 5.3 billion, shares + 17.56% Rp 154
10. Sarimelati Kencaana (PZZA), IDR 3.8 billion, + 15.38% shares IDR 750
Director of Anugerah Mega Investama Hans Kwee assesses, On a weekly basis, the JCI still shot up 2% in response to the announcement of the BI 7-Day Reverse Repo Rate by Bank Indonesia (BI) which was set at 3.75% and became the lowest level in its history.
Likewise, foreigners who are still relatively comfortable holding national shares can be seen from the position of their funds for a week which still recorded a net buy of Rp 435.1 billion. The total value of transactions a week reaches IDR 61.2 trillion.
“This optimism is inseparable from BI’s decision to cut its benchmark interest rate, in order to boost economic recovery, which is currently still under pressure as a result of the pandemic. The decline in interest rates will be followed by a reduction in bank lending rates which will ease bank debtors,” Hans said in a statement.
“In the long term, low interest rates will also help accelerate the rolling of the economy which in turn makes investment asset classes in Indonesia such as stocks and bonds rise again and become fundamentally attractive.
“However, investors take advantage of the momentum of the release of Indonesia’s balance of payments (NPI) data to realize the profits that have been reaped since the beginning of the week,” he said.
He said that in fact the stock market had increased due to optimism for the Covid 19 vaccine, as seen by the flow of funds into the stock market.
The sectors that went up were mainly banks, tours and travel and commodities. In addition, it can be seen that investors have begun to shift to Southeast Asian stocks as a global rotation from high value sectors to growth sectors.
UBS Global Wealth Management advised investors looking for high yields to switch to Asian and emerging market bonds in the next year. It seems that the increase in financial markets in Southeast Asia including Indonesia in the next year will still occur, especially if the vaccine is effective and is successfully distributed.
“The increase in cases of Covid 19 in several countries in the world along with the decline in optimism for the Covid 19 vaccine, we expect the stock market to weaken consolidation. In addition, the problem of stimulus and financial markets have risen a lot in the last few weeks, thus opening up a healthy correction in the JCI. Support for JCI at the level of 5.541 to 5.462 and resistance at the levels of 5,628 to 5,657.
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