The Election Commission has set a couple of Joko Widodo-Jusuf Kalla as the President and Vice President elected to the 2014-2019. It imposes on the Composite Stock Price Index (IHSG) at the opening of trading today.
“The results of the presidential elections in accordance with market expectations will encourage strengthening of the IHSG,” said equity analyst of Asia Financial Network, Agus Santoso.
In addition to national political sentiment driven, strengthening the global market is utilized to encourage strengthening of the IHSG. In fact, IHSG could rebound, having weakened after a pair of presidential candidate Prabowo, rejected results of the recapitulation. He predicts even though, at the close yesterday, IHSG is weakened. However, the purchase of foreign investors is good enough. This indicates optimism over Indonesia’s market.
Strengthening of the IHSG, it will run until October later toned, if fundamentals of growth outperform expectations as issuers, the JCI would advance on the 5200 level. It can be seen after a few issuers such as banks, will release financial statements Friday tomorrow.
He denied if the strengthening of the IHSG, just because of the Jokowi effect. But, more influenced by the fundamental performance of large issuers. “See the fundamental performance of the first, the second quarterly performance average announced on Friday. If positive could rally up to at least the IHSG October later on,” he said.
IHSG will be weakened, if estimates of the trade balance deficit, the imbalance is the management structure of the State Budget, and the growth of infrastructure in Indonesia are slow.
Likewise, factors exchange rates are constantly fluctuating and tend to weaken so damning issuers that issued the debt in the form of direct dollar or in-kind revenue dollars, but the dollar then it will stifle the IHSG. “If IHSG strengthened, I guess it was not until the early fourth quarter in which the Fed plans to stop stimulusnya altogether. Surely the market will adjust.”
Agus added a IHSG index rate in August last year experienced a weakening or declined because of the uncertainty caused by the policy of the Fed which slashed the stimulus. “If this August, sentiment is more positive,” he said.