Jakarta, CNBC Indonesia – The movement of the Composite Stock Price Index (IHSG) on Thursday (8/10/20) was closed in the green zone, up 0.70% at the level of 5,039.14.
The index rate in the green zone at the close of 15.00 WIB occurred even though there were demonstrations and strikes carried out by workers in the last 2 days to reject the ratification of the Job Creation Law.
The demonstration, which later became chaotic, took place when the masses advanced around Harmoni, Central Jakarta, close to the State Palace. This mass action was met with tear gas shots to disperse the masses.
This demonstration was against the passage of the Omnibus Law on Cipta Kerja (Ciptaker) which was passed by the DPR on Monday this week and is considered to have severely cut off workers’ rights.
Capital market observer, Rovandi, said that today’s chaotic demonstration sentiment will bring the index in downtrend although it is considered not to be too deep.
“I think JCI for tomorrow is still moving in a thin range with support-resistance [batas bawah dan batas tahanan atas] the level of 4,990-5,087 with a correction tendency or downtrend. So yes, the demonstration is enough to put pressure on the JCI tomorrow, “said the former Trimegah Sekuritas Indonesia analyst to CNBC Indonesia, Thursday (8/10/2020).
However, Head of Research at MNC Sekuritas Edwin Sebayang said that the positive effect brought by the Ciptaker Law was greater. In fact, the effect of this demonstration will be dampened by positive sentiment for the presence of the Act.
“The market is looking more at the positive impact of the enactment of the Omnibus Law because it has the potential to attract many foreign investors [investasi langsung asing/FDI] and make Indonesia more competitive to compete with other Asean neighbors, “he explained.
IDX trade data noted that at the close of today’s trade, foreign investors only came out of Rp. 61 billion, from usually always above Rp. 300 billion a day.
However, in the last 5 trading days accumulatively, foreigners recorded a net sell of Rp. 1.09 trillion in the regular market and year to date or the current year, net sell of Rp. 61 trillion.
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