Jakarta, CNBC Indonesia – The Composite Stock Price Index (JCI) last week rose 2.8% to 6,104,324, in 5 trading days it was recorded to have strengthened only 2 times, and weakened twice but slightly. JCI has yet to stop its long rally, posting 11 straight weeks of gains.
Trade data shows that foreign investors made net buying of Rp. 1.04 trillion on the regular market this week, with a transaction value of nearly US $ 102 trillion.
This national pride exchange is at its highest level since last January.
Compared to major Asian exchanges, JCI is leading the way, as well as major European exchanges and the United States (US) this week. JCI only lost to the Nasdaq index which rose 3.05%.
Even though they were able to keep going, negative sentiment came from the Indonesia Stock Exchange (IDX) which announced that starting January 1, 2021, securities transactions made on the IDX will be subject to stamp duty of IDR 10 thousand per document. The stamp duty is imposed without limitation on the nominal value received by the investor.
This stamp duty fee will be the responsibility of the investor until the Exchange Member (AB) is appointed as the Obligatory Collector.
This policy is in accordance with the passing of Law Number 10 of 2020 concerning Stamp Duty in October 2020.
This transaction will be charged for each Trade Confirmation (TC) without limitation on the nominal value received by the investor as a securities transaction document. This means that even small transactions can be subject to stamp duty, which will be detrimental for retail investors. This has triggered rejection of the imposition of stamp duty.
However, the Directorate General of Taxes, in his rebuttal on Saturday last week, emphasized that he is currently drafting implementing regulations on the Stamp Duty Law.
“Imposition of Stamp Duty will be carried out on documents by considering the limits of fairness of value stated in the document and paying attention to the ability of the community,” wrote the DGT in an official statement received by CNBC Indonesia, Saturday (19/12/2020)
Meanwhile, good news came from Uncle Sam’s country which could bring the JCI going up again on Monday’s trade (21/12/2020).
The US Congress has resolved political differences over a $ 900 billion stimulus deal. which includes Direct Cash Assistance (BLT) worth US $ 600 per person.
The package also includes assistance for Small and Medium Enterprises (SMEs) worth US $ 300 billion and an additional US $ 300 per week for claims for unemployment benefits, which are currently being enjoyed by 12 million unemployed people.
The stimulus proposal will bevoting the earliest on Sunday night US time, meaning Monday morning Indonesian time.
Technically, the IHSG is still able to stay above the 6,100 level, showing strong momentum.
The beginning of the strengthening momentum of the JCI began Thursday (5/11/2020) when White Marubozu appeared on the daily candle stick chart.
At that time, JCI opened trading at the level of 5,161.39, which was also the lowest daily level, and ended trading at the level of 5,260.326, as well as the daily highest level.
Level open equal to low, and close equal to high that is what is called White Marubozu.
White Marubozu is a signal that the value of an asset will strengthen again. It was proven afterwards that the JCI continued to strengthen.
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Graphic: Daily IHSG Foto: Refinitiv- – |
On Monday (23/11/2020) and Thursday (26/11/2020) the JCI again formed a White Marubozu pattern, so that the rally continued.
The JCI also moved above the 50-day moving average (50-day moving average / MA), 100-day (100-day MA) and 200-day (200-day MA) moving average, which added to the strengthening momentum.
The stochastic indicator on the chart has returned to the overbought area (overbought). This means that the pressure drops again.
Stochastic is leading indicator, or indicators that initiate price movements. When Stochastic reaches the territory overbought (above 80) or oversold (below 20), then the price of an instrument has the opportunity to reverse direction.
 Graph: IHSG 1 HourFoto: Refinitiv- – |
Hourly stochastic is moving down and is near the area oversold.
Immediate resistance is in the range of 6,140, if the JCI is broken there would be a chance to strengthen to 6,170 before heading for 6,200.
Meanwhile, while stuck below resistance, JCI is at risk of falling with the closest support at 6,090, before heading for 6,050 to 6,030.
CNBC INDONESIA RESEARCH TEAM
(pap / pap)
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