Jakarta PSBB applies, JCI still has the potential to strengthen

Reporter: Ika Puspitasari | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. The Provincial Government of the Special Capital Region of Jakarta will implement large-scale social restrictions (PSBB) for two weeks starting Monday (14/9). How does it affect the movement of the Jakarta Composite Index (IHSG)?

Muhammad Nafan Aji Gusta Utama, Binaartha Sekuritas analyst, said that PSBB would not have a significant negative impact on the capital market. The reason is, the wheels of the economy can still run.

According to him, the decline in the JCI that occurred on Thursday (10/9) by 5.01% was only temporary and can be seen on Friday (11/9) that the JCI climbed again by 2.56% to the level of 5,016.71.

He saw that the development of the corona vaccine could be a positive sentiment for the JCI.

In addition, Nafan emphasized that the central and regional governments need to be in harmony in suppressing the Covid-19 case. In the midst of returning to the implementation of the PSBB, the government also needs to accelerate the realization of the national economic recovery program (PEN), because currently its realization is still minimal. The acceleration of the distribution of PEN funds will make the market appreciate the government’s efforts.

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Nafan revealed that a number of issuers that will be affected by the implementation of this PSBB are among them the sectors related to tourism, recreational parks and entertainment.

This week, he projects that JCI can still move in the positive zone with the first and second support having a range at the level of 4,778.71 to 4,865.27. Meanwhile, the first and second resistance ranges from 5,097.14 to 5,172.37.

“The meeting of the Board of Governors (RDG) of Bank Indonesia, which is predicted to decide the 7-Day Reverse Repo Rate (7DRR) at the 4% level, will be one of the positive catalysts next week,” Nafan said when contacted on Sunday (13/9).

Director of Anugerah Mega Investama Hans Kwee also stated that the implementation of the PSBB in Jakarta was of concern to market players. The statement of the Governor of DKI Jakarta, Anies Baswedan on Wednesday (9/9) regarding the implementation of the PSBB starting September 14, 2020, became a negative sentiment for the market.

“Market players will pay close attention to the progress of the implementation of the PSBB and if it occurs it is strictly expected to disrupt the ongoing economic recovery,” he said in a release received by Kontan, Sunday (13/9).

Hans reminded that while foreign funds are still flowing out and the rupiah exchange rate is still weakening, market players need to be wary of deeper correction opportunities.

He guessed that the stock market seemed to be very careful about entering PSBB on Monday (14/9). The market for a consolidation opportunity tends to weaken next week with the estimated support at the level of 4,878 to 4,712 and resistance at the level of 5.084 to 5,256.

Hans suggested that market players should sell first when the market strengthens to anticipate the negative impact of PSBB implementation on the economy.