The market needs to pay attention to several sentiments, from movements in the rupiah exchange rate to the effect of the announcement of the Constitutional Court's decision.
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By
ERIKA KURNIA
·3 minutes read
KOMPAS/PRIYOMBODO
Visitors documented the monitor showing the movement of the stock index at the Indonesia Stock Exchange in Jakarta on Tuesday (16/4/2024). The Composite Stock Price Index (IHSG) at the opening of this morning's trading session after the long post-Lebaran holiday was in the red zone.
JAKARTA, KOMPAS — The weakening of the Composite Stock Price Index or IHSG towards the level of 7,000 last week is predicted to continue towards the end of April 2024. Several factors of weakening due to domestic sentiment need to be anticipated by the market.
The IHSG during the past week showed negative growth of up to minus 2.74 percent to the level of 7,087 at the end of Friday's trading on April 19, 2024. The financial and raw material sectors weighed down the index. Foreign investors recorded net sales amounting to Rp 904 billion.
This trend was once again observed at the start of trading in the stock market on Monday (April 22, 2024). The JCI moved negatively by up to 0.6 percent to the level of 7,040 at around 11:00 AM WIB. According to Mirae Asset Securities Indonesia in their analytical report, the JCI is predicted to consolidate within the range of 7,055 to 7,120.
"The weakening sentiment of the rupiah and continued foreign selling are expected to continue to weigh on trading today," said their report.
After reaching the level of Rp 16,000 per US dollar, the exchange rate of the rupiah last week relatively fluctuated in the range of Rp 16,200 per US dollar to Rp 16,300 per US dollar. The exchange rate of the rupiah has weakened by 5.6 percent throughout the year 2024.
Chief Economist of Bank Mandiri, Andry Asmoro, noted that as of Friday (April 19, 2024), the rupiah declined by 0.5 percent to Rp 16,255 per US dollar. The depreciation is predicted to ease. "The rupiah against the US dollar is expected to move between Rp 16,214 and Rp 16,285," he said.
Capital market observer William Hartanto stated that the sentiment of the continued weakening of the rupiah could be responded to by the government through Bank Indonesia (BI) through a new monetary policy at the BI Board of Governors (RDG) Meeting scheduled for Wednesday ( 4/24/2024) this week.
"There is a BI RDG this month because of concerns about the weakening of the rupiah and expectations of BI's efforts to maintain its stability," he said to Kompas.
KOMPAS/HENDRA A SETYAWAN
Police and security units held a parade in the courtyard of the Constitutional Court Building (MK), Jakarta, ahead of the reading of the verdict on the dispute over the results of the 2024 Presidential Election, on Monday (22/4/2024). Security around the MK Building was strengthened. Medan Merdeka Barat Street was also closed during the trial.
In addition, according to William, the market will pay attention to the verdict of the dispute over the results of the 2024 Presidential Election by the Constitutional Court (MK) which has been ongoing since Monday morning. The lawsuit over the election results dispute was filed by the number 1 presidential-vice-presidential candidate pair, Anies Baswedan-Muhaimin Iskandar, and the number 3 candidate pair, Ganjar Pranowo-Mahfud MD.
The lawsuit related to Gibran Rakabuming Raka's nomination as vice president is deemed to be related to the Constitutional Court's decision regarding the requirements for presidential and vice presidential candidacy. In addition, there are allegations of fraud due to the massive phenomenon of social assistance (bansos) distribution during the presidential election campaign, which is considered beneficial to the number 2 pair, Prabowo Subianto-Gibran.
"From technical factors alone, the JCI is entering a weakening trend with an estimated target of 7,000," said William.
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