Jakarta, CNBC Indonesia – The Jakarta Composite Index (IHSG) experienced a temporary suspension of trading (trading halt) after the index corrected 5% on Thursday last week (10/09/2020). The index’s lowest position last Thursday was at 4,886.98 points.
In Friday trading, the index was then able to rise or rebound and closed up 2.56% at 5.016 position. But throughout the week (7-11 September) JCI was minus 4.26%.
This sharp weakening occurred after DKI Jakarta Governor Anies Rasyid Baswedan announced that the ’emergency brake’ was withdrawn again. Large-Scale Social Restrictions (PSBB) in the capital have been tightened again, there is no longer a Transitional PSBB. Starting September 14, Jakartans are again advised to #dirumahaja.
This raises concerns that market players will have economic activity halted again due to reduced physical activity and an impact on decreasing economic activity.
However, the provincial government of DKI Jakarta in fact still provides room for economic activities to continue with a number of provisions and implementation of strict health protocols.
President Director of PT Samuel Aset Management (SAM) Agus Basuki Yanuar said that there was room for a sustainable economy to run, providing improved sentiment for market players.
But in general, we expect that from next year Indonesia’s economic growth will improve, after this year it is estimated that it will experience a weakening or at best it will be in a position flat.
“In general, even though this year’s GDP [PDB] we are potentially negative or flat, investors have seen that in 2021 there will be an improvement in GDP and EPS growth [pertumbuhan earnings per share], so the JCI until the end of this year there is still the potential to strengthen to 5,400 – 5,600, “said Agus to CNBC Indonesia, Monday (14/9/2020).
For this reason, the investment manager investment strategy (MI) with the expectation of economic improvement next year prefers stocks that have the potential to benefit from these conditions (proxy to recovery).
In addition, issuers with strong balance sheets are also options for current asset placements.
“The sectors of choice are banking, telecommunications, healthcare, retail, consumer, logistics, “he said.
On previous occasions, Chief Economist and Investment Strategist PT Manulife Aset Manajemen Indonesia, Katarina Setiawan also explained that currently it is average return or mutual fund yields still follow market trends, so that the investment mix strategy prudent should be a priority.
“The sector must be defensive so that when a sale is made it can be sold without suffering a loss, so now the principle put forward is the principle of prudence. [prudent], do not chase too much return which is high regardless of the risks involved, so caution is number one, “said Katarina, in a dialogue with Closing Bell, CNBC Indonesia.
He said that amidst the current conditions of economic uncertainty and turmoil, investors tend to prefer products with relatively low volatility, such as money market mutual funds and fixed income mutual funds.
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