JAKARTA (TheInsiderStories) — The election result dispute trial in Constitutional Court brought negative sentiment to the market. As Jakarta Composite Index (JCI) fell by 0.36 percent to 6,250.26 and hit its week-lowest, along with Rupiah that weakened by 0.23 percent, analyst considered that domestic investors fear over the condition.
On Friday’ trial, the court decided to continue the process tomorrow. Universal Broker Head of Research Satrio Utomo mentioned, the postponement of further trial until Tuesday would bring more suffering to the market.
He predicted that there will no big and drastic change following the election result lawsuit in Constitutional Court. Especially, it would be very expensive to hold re-election.
“If Constitutional Court would make drastic decision like re-election, it could be chaos,” he said.
Meanwhile, William Surya Wijaya, Indosurya Sekuritas Head of Research considered that the voting results dispute duly weighed the JCI, seeing a relatively small capital outflow. On Friday, foreign outflow recorded at Rp64.03 billion (US$4.48 million). While, all sectors but agriculture and trade experienced decline.
According to him, such dispute is a natural occurrence in every country. But the current market pressure is more to consolidation after JCI almost reaching all-time high.
“I see more than economic factor than politic,” he stressed.
Wijaya sees that the pressure on JCI could still be existing in short-term, at least until next Tuesday. He estimated, stocks market would still be above 6,000, and there is nothing to worry.
Utomo also highlighted that the election dispute trial sentiment isn’t so big. According to him, the recent JCI sentiment is more to regional market and The Federal Reserves potency to cut the reference rate. In short-term, he recommended investors to buy on deep.
On Friday, the Constitutional Court is having the first hearing on the Prabowo Subianto – Sandiaga Salahuddin Uno. Their lawyers challenged the official tally announced by the General Elections Commission (GEC), citing electoral fraud and accusing the other party of cheating.
Based on the GEC’ calculation Joko Widodo and his running mate Ma’ruf Amin won the presidential election with over 85.6 million votes or 55.5 percet while the opposition got 68.6 million votes or 44.5 percent.
Subianto’ camp saying that the election was rigged “structurally, systematically, and massively”.
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