“Indonesia Stock Exchange Records 30% Drop in Daily Transaction Value in 2023”

Jakarta, CNBC Indonesia – The Indonesia Stock Exchange (IDX) recorded the average daily stock trading transaction value of all securities in the January to April 2023 period of IDR 10.275 trillion. This value dropped 30.13% compared to 2022 which amounted to IDR 14.706 trillion.

Meanwhile, the average daily transaction value of the Exchange this week changed by 2.14% compared to last week, namely to Rp 10.164 trillion from Rp 10.387 trillion.

Analyst who is also Senior Investment Information Mirae Asset Sekuritas Nafan Aji Gusta said that many factors contributed to the sluggish Indonesian stock market transactions, ranging from external factors such as the threat of a global recession to a decline in people’s purchasing power.

“There is a lot of (negative) sentiment. (Although) many issuers have positive fundamental performance. You can (look) back for a few timelineThis is from January to April (2023),” he said when contacted by CNBC Indonesia, Wednesday (17/5).

According to him, since the beginning of 2023 the stock market has been overshadowed by the threat of a global recession in which inflation rates in a number of countries have risen significantly. This made investors take a stand wait and see or alert.

“We admit that at the beginning of the year, global conditions faced the placement of recession capabilities. We admit that commodities have also experienced a downward trend, for example experienced by coal. The global recession factor is one of the main factors caused by the performance of stocks in Indonesia,” he explained.

In addition, the policies of the Fed and the phenomenon of global bank bankruptcy cast a dark cloud over stock market investment. Investors ultimately prefer to place their funds in low-risk investment instruments such as bonds and gold.

“Investors at that time tended to pay close attention to, for example, bonds which did provide a definite return with a minimal level of risk. This was one of the instruments of choice amid fears of a global recession. On the other hand, gold experienced uptrend. because gold instruments are safe heaven for investors where there is global uncertainty related to commodities and recessions,” he said.

Meanwhile, from within the country, apart from the many national holidays, people’s consumption and purchasing power during the festive season are not as good as in previous years. He considered that people tend to be moderate in shopping.

“I remember that Ramadan consumption is somewhat more moderate than in previous years, in connection with the trend of rising inflation in the country due to global inflation,” he said.

Meanwhile, DCFX Futures Chief Analyst Lukman Leong also said the same thing, the shift in the selection of investment instruments was the reason transactions in the capital market tended to decline.

“The number of holidays is one of them. Apart from that, investors are also seen shifting their portfolios to SBN. The high demand for Indonesian government bonds has brought bond yields to continue to fall. You could say the same. Investors tend to avoid stocks and are more interested in SBN,” he said .

Associate Director of Pilarmas Investindo Sekuritas Maximilianus Nicodemus said, aside from the national holidays and holidays, at that time there was a slowdown in economic growth in America and China.

Moreover, the IMF also issued a warning that the prospects for economic growth will also experience a decline over the next 5 years

“Not only that, this Eid is indeed an all out Eid for the first time. So if we pay attention, with 14 working days presented, the transaction space is indeed getting smaller which resulted in April’s total transactions falling -7.69%,” he concluded .

(mkh/mkh)