Wednesday, 22 May 2019 | 05:31 WIB

JCI Conducive as Investors Respond to General Election Results

JCI Conducive as Investors Respond to General Election Results (idx)

JAKARTA, NETRALNEWS.COM - The Indonesia Stock Exchange (IDX) considers that the appreciation of the Jakarta Composite Index (JCI) is one form of investor confidence in the conduct of the 2019 general election which is conducive.

"If we see (the general election), it went peacefully, calmly, and voting was also okay. So it is reflected in the market here, the market is quite confident," said Inarno Djajadi, President Director of IDX in Jakarta, Thursday (04/18/2019).

He explained that the implementation of a conducive democracy party could bring the JCI to a positive trend in the short and long term.

"Apparently, investors have bought in yesterday (Election)," he said.

The same thing was said by the CEO of PT Arah Investasi Mandiri, Hendra Martono Liem, who said a number of stock market players began to take buy positions along with the implementation of safe elections.

"There is no anxiety in investors or a movement that is not good. The government keeps the security conducive," he said.

He added that confidence in the stock market was also seen from foreign investors who recorded net purchases of Rp1.4 trillion on Thursday (4/18).

The JCI on Thursday (18/4) closed up 25.68 points or 0.4 percent to 6,507.22. While the 45 leading stocks or the LQ45 index moved up 6.17 points or 0.6 percent to 1,030.12.

Nevertheless, Hendra Martono Liem reminded investors to remain vigilant about profit taking when share prices move up.

"Profit taking continues to overshadow the stock market movement when prices are rising. However, this is reasonable," he said.

Previously, Director of Investment Strategy and Head of Macroeconomics at Bahana TCW Investment Management, Budi Hikmat reminded investors not to be complacent with election sentiment because there are still other sentiments.

The sentiments that must also be considered include the issuer's financial performance reports, government policies in improving the current account deficit, until the new cabinet in the next government.

"These sentiments are enough to influence investors to invest their funds in the capital market," he said.