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Indonesian stocks still subdued by Trump effect: Analyst
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US President Barack Obama and president-elect Donald Trump shake hands on Nov. 10 following a meeting in the Oval Office of the White House in Washington. (AP/Pablo Martinez Monsivais)
T
he so-called Trump effect is still putting pressure on the Indonesian stock market, according to an analyst. The Jakarta Composite Index (JCI) fell by 0.73 percent to 5,078.5 points on Tuesday.
"But compared to Monday, the effect was smaller," Reliance Securities analyst Lanjar Nafi stated in a press statement Tuesday, adding that the benchmark had plunged by 2.63 percent on the previous day.
Trump's plans to cut taxes and increase government spending had caused uncertainty and concern among investors about putting their money in the Indonesian capital market, Lanjar said, adding that many were taking a wait-and-see approach.
Foreign investors conducted Rp 551.86 billion (US$41.32 million) in net sales, keeping the Indonesian market in the red for a third consecutive day.
Stocks of state-owned banks BNI and BRI dropped by 0.9 percent and 2.44 percent, respectively, on Tuesday.
Having seen his company’s share price decline two days in a row, BRI president director Asmawi Syam said he expected the price to bounce back soon.
He suggested that the fundamentals, such as profitability and operational performance, still made BRI and other major companies attractive for investment.
"[The market correction] is just momentary, if investor still believes in our fundamentals, they will be back," he said. (dan)
