Jakarta, CNBC Indonesia – Domestic capital market investors, in particular, are indeed rejoicing dnature of the investor’s last 6 trading days.
Imagine, imagine the Composite Stock Price Index (IHSG), which is the benchmark index for the country’s capital market, managed to rally fast.
The strong bonds of the capital market are inseparable from the two positive sentiments that come along.
First, of course, is the news of the victory of the candidate for President of the Democratic Party, Joe Biden, who won over the President of the United States, Donald Trump.
The Biden-Kamala Harris pair are predicted to be able to stop the trade war with China that was previously waged by Trump so that the global economy will recover more quickly amid the Covid-19 attack without further drama.
Furthermore, Joe Biden’s non-impulsive nature of Trump is certainly good news for the market because market volatility due to Trump’s taunts will stop. Remember uncertainty is the enemy of the capital market.
In addition, the Democrat Party’s policy that tends to be ‘hooked’ to increase taxes, especially corporate taxes to finance the amount of fiscal stimulus disbursed, of course, will cause Wall Street investors to rethink placing their funds in US companies.
This causes investors to withdraw their funds from Uncle Sam’s Exchange and move them to the stock exchange emerging market and it is not impossible that the Indonesian stock exchange will be splashed.
The second positive sentiment, which is no less exciting came from pUS pharmaceutical company,Pfizer yang in collaboration with BioNTech from Germany. The company announced that his vaccine is effective at warding off disease caused by the corona virus (Covid-19) by more than 90% without dangerous side effects.
Pfizer Chairman & CEO Albert Bourla said the latest developments were a wonderful day for science and humanity. The final efficacy of the vaccine is said to be safe.
“The first results from the phase three clinical trial of the vaccine indicate the ability of our vaccine to prevent Covid-19,” said Bourla in a statement, as reported by CNBC International.
“With today’s news we are getting closer to providing vaccines to people around the world, and hopefully this will help end the world health crisis,” said Bourla.
The two companies plan to apply for emergency use of the vaccine to the US Food and Drug Administration (FDA) in the third week of November 2020.
The news raises the hope that life will soon return to normal, the wheels of business are slowly turning back, and the economy will soon rise.
Suddenly the two very positive sentiments were responded very well by investors.
Trade data recorded that the JCI managed to accelerate from the certain date of Joe Biden’s victory, which collected more than 270 electoral votes, namely at the opening of trading on November 5 2020 at 5,105.19 to the closing level yesterday, Thursday, November 12, 2020 at 5,458.60 or a rally of 350 index points or 6.91%.
Not only the JCI, another reference index that is no less interesting on the IDX, namely the index with stock constituents that have high liquidity and qualified business prospects, namely LQ45, has even managed to fly higher than the JCI.
During 6 trading days, LQ45 successfully shot 10.95%.
Even though the average has gone green, which LQ45 stocks managed to win the positive sentiment that came from the victory of Biden and Pfizer Vaccine?
Best Stocks on the LQ45 Index
There were 3 LQ45 issuers who won the last 6 days from the construction sector and its supporting sectors.
It was the cement stock of PT Semen Indonesia Tbk (SMGR) which led the rally with an increase of 24.11%. Furthermore, in third position there are also cement issuers namely PT Indocement Tunggal Prakasa Tbk (INTP) with a rally of 19.58%
The fourth position was occupied by the red plate construction company PT Wijaya Karya Tbk (WIKA) which managed to shoot 18.03%.
Construction issuers do benefit from the corona vaccine because with the discovery of an effective vaccine, of course, stalled projects that were previously forced to stop because nCov-19 was able to run again.
Furthermore, expansion in the real sector which was previously halted due to the pandemic will also resume if normal life sponsored by the vaccine can be achieved.
In addition to the three construction issuers, PT Bank Rakyat Indonesia Tbk (BBRI) has also emerged with a large market capitalization.
BRI, which occupies the second largest market capitalization position on the IDX, increased by an appreciation of 20.06%.
In fifth position also appeared issuers with the third largest market capitalization on the IDX, namely PT Telekomunikasi Indonesia Tbk (TLKM) with an increase of 17.83%.
Large market cap stocks will usually benefit the most if there is an inflow of foreign funds due to stocks big cap it is usually more attractive for foreign investors to place their funds.
CNBC INDONESIA RESEARCH TEAM
(trp/trp)
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