Foreigners still continue to sell net in the stock market, these are the factors that cause it

Reporter: Nur Qolbi | Editor: Anna Suci Perwitasari

KONTAN.CO.ID – JAKARTA. In the midst of sentiment window dressing which usually occurs at the end of the year, foreign investors record a sell-off in the Indonesian stock market. In the week ending Friday (17/12), the total net sell foreign exchange in the regular market of Rp 1.18 trillion and in the past month net sell reached Rp 5.8 trillion.

Phintraco Sekuritas analyst Valdy Kurniawan said, net sell This foreign exchange was caused by the anticipatory attitude of investors towards the tightening of monetary policy by the United States (US) Federal Reserve.

As is known, last week, the Fed announced a cut in bond purchases by US$ 30 billion per month, higher than the previous US$ 15 billion.

Furthermore, the Fed also revealed the potential to increase its benchmark interest rate three times next year. “I see that this is more aggressive than market players anticipated,” said Valdy when contacted by Kontan.co.id, Sunday (12/19).

At the same time, the development of the Omicron variant of the Covid-19 variant has also triggered concerns about Indonesia’s economic prospects. Net sell It is also predicted that this will happen until there is certainty about how dangerous omicron and omicron’s response to vaccines are, as well as the development of omicron and new cases in Indonesia.

Also Read: Foreign Net Sell Lately, What Is The Fate Of Window Dressing?

Furthermore, the release of economic data, especially economic growth and the release of financial performance in 2021 will also be the determining factor whether it continues or not net sell foreign. If both are good, then capital outflow can be muted.

Despite a lot of negative sentiment looming over the stock market at the end of this year, Valdy predicts, window dressing still possible to be precise in the last two weeks of December. Considering historically, the JCI has always strengthened in December for the last 20 years.

Valdy predicts, the 6,700 level can still be reached by the end of 2021. “But maybe concern on negative sentiments and the significant strengthening of the JCI that occurred last October could limit the strengthening of the JCI this weekend,” said Valdy.

According to him, the closest resistance for the JCI is at the level of 6,630. If it is successfully penetrated, it has the potential to rise again to the level of 6,680. Meanwhile, critical support is at the level of 6,500 with tip support at 6,550.