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Investing in stocks: Best strategies in volatile times
Stocks traded on the Indonesia Stock Exchange (IDX) have been enjoying gains in the past few months against the backdrop of a gloomy economic outlook in time of the COVID-19 pandemic.
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JakPost Up Close: Financial Planning Series 2. (JP/Sandy Riyady)
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tocks traded on the Indonesia Stock Exchange (IDX) have been enjoying gains in the past few months against the backdrop of a gloomy economic outlook in time of the COVID-19 pandemic. This has raised the questions: Are the gains sustainable? How do investors strategize during uncertain times?
After losing 30 percent in three weeks in March to 3,937 on March 23, the lowest level since 2012, the benchmark Jakarta Composite Index (JCI) has since gained 23 percent to 4,880 on Friday. The stock market rally follows a positive trend in global shares as economies around the world gear up for reopening after around three months’ of lockdowns, analysts said.
Analysts also attributed the recent surge in stock prices to stimuli pumped by central banks and governments around the world. The European Central Bank (ECB) committed to a 1.35 trillion euro (US$1.516 trillion) bond-buying program while the Federal Reserves has pledged to keep stimuli coming for years.
The positive global sentiments have pushed up capital inflows into Indonesia’s stock market. In the past month, foreign investors pumped in a net of Rp 11.5 trillion into Indonesian stocks, pushing up prices.
However, risks remain on the horizon as COVID-19 remains a global pandemic with no globally accepted cure and vaccine found so far and fear over a second wave of infections. Meanwhile, economic recovery has yet to take shape with the end to the current global recession not within sight, relying heavily on public health containment measures.
The global GDP is likely to contract 5.2 percent this year, according to the World Bank. Meanwhile, the Indonesian government estimates economic growth to reach 2.3 percent this year or contract by 0.4 percent under the worst-case scenario.
The Jakarta Post aims to discuss issues related to the sentiments that drive the stock market and strategies to invest in its Jakpost Up Close webinar, Investing in Stocks: Best Strategies During Volatile Times.
The webinar, which will be held on Wednesday is the second out of three financial planning series organized by the Post with credible sources within the industry. The first discussed the bond market and the third will be on financial planning for insurance.
Wednesday’s event will be opened with a keynote speech from IDX director Hasan Fawzi with insights into outlooks and opportunities in stocks, among other topics. Audiences will also hear from top fund managers and brokerage houses in Indonesia, all in one event.
Lilis Setiadi, president director of one of Indonesia’s largest fund managers Batavia Prosperindo Aset Manajemen, is set to speak on the current global and domestic economic overview, stock market performance and outlook, as well as a sectorial overview of stock market investments.
Irawanti, investment director at Schroders Indonesia, a top investment management company in the country, will share Schroders’ analysis on the stock market’s performance and outlook, strategies to invest in stocks amid volatility and recovery in the market.
Hariyanto Wijaya, head of research at Indonesia’s most active brokerage house Mirae Asset Sekuritas Indonesia, will also speak about Indonesia’s stock market performance and outlook, sectorial and stock overview, including top picks and projected gains, as well as corporate earnings and dividends.
Bernadus Wijaya, director of equity and business development at Sucor Sekuritas, will share investment strategies, elaborate on sectorial and stock performance and outlooks, as well as why investing in the stock market is relevant for young people and first-time investors’ financial portfolios.
Retail and institutional investors, including first-time or would-be investors, fund managers, analysts and researchers, as well as public and private sector employees have been invited to take part in the webinar to enrich their knowledge and gain first-hand knowledge and suggestions from the most credible sources in the industry.
