JAKARTA (TheInsiderStories) – Some analyst sees the Jakarta Composite Index (JCI) and Rupiah will enter the green zone territory after the Constitutional Court ruling on the 2019 presidential election. Yesterday, panel of judges rejected the opposition lawsuit after long hours hearing.
Analyst from Investa Saran Mandiri Hans Kwee rated that the decision of constitutional court had not impacted enormously to the stock market cause investors has calculated Joko Widodo – Ma’aruf Amin will govern Indonesia.
“The difference between Joko Widodo – Ma’aruf Amin and Prabowo Subianto – Sandiaga Salahuddin Uno is too far away. Also, there is rumor Prabowo – Sandiaga is about to be allied with Joko Widodo – Ma’aruf Amin,” he said on Thursday (O6/27).
The market is more concern to the global condition as the tension between the United States (US) and China that has not ended yet. “For a week later, JCI tends to move mixed,” he added.
Meanwhile, Economist of PT Bank Central Asia Tbk (IDX:BBCA) David Sumual also sees the positively impact to Indonesian Rupiah movement after the Courts decision.Same with Kwee, Sumual also concerns about global issues such, as Group of 20 (G20) meeting in Osaka, Japan, trade war issues and the Federal Reserves statement that will effect to the policy rate.
While, Economist at Samuel Sekuritas Indonesia Ahmad Mikail opined the combination of external and internal sentiments made the Rupiah strengthened. He said, the direction of US – China trade negotiations, gave a positive sentiment to the local currency.
Earlier, US Treasury Secretary Steven Mnuchin said that the meeting between President Donal Trump and Chinese leader Xi Jinping a at the G20 Summit was running smoothly. However, the chances of the two countries really agree that the trade negotiations have not yet appeared.
“At least, the US government will not rise the import tariffs of Chinese products. The risk of trade war seems to subside for now,” said Mikail.
Furthermore, Valbury Asia Futures analyst Lukman Leong stated that the sentiment of the Constitutional Court’ decision also drive the investor confidence and will make foreign funds re-enter the financial market.
Actually, he said, the Court’ decision has been predicted by market participants. Therefore, even though it strengthened in a week, the Rupiah was not too volatile.
Leong is still optimistic, the domestic currency will move positively this weekend. For today he predicted, the Rupiah will move in the range of 14,100 – 14,200 over the Greenback. While Michael estimates that local currency to move between 14,100 – 14,130 against the US Dollar.
In the closing trading on Thursday, the JCI is closed up by 0.66 percent to 6,352. However, Rupiah dropped by 0.25 percent to 14,135 per US Dollar and Bank Indonesia middle rate slightly weaker by 0.04 percent to 4,180 against the American Dollar.
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