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View all search resultsWhoever wins, market will rally after elections: Analysts
The JCI grew by 44.56 percent in the year of 2004, when Indonesia held its first direct elections, and even jumped by 86.98 percent in 2009. In 2014, the index still managed to record an impressive 22.29 percent increase.
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A screen displays stock prices at Indonesia Stock Exchange (IDX) in Jakarta. (Shutterstock/File)
R
egardless of who wins this week’s presidential election, the country’s capital market will rally, analysts predict, as such a political event has proven in the past to give the market a boost.
Indonesian voters are called to cast their ballots for the president and legislators on Wednesday in the first-ever simultaneous elections.
Indonesia Stock Exchange (IDX) senior researcher Poltak Hotradero said the elections could see the country’s capital market, particularly the Jakarta Composite Index (JCI), rally.
The JCI grew by 44.56 percent in the year of 2004, when Indonesia held its first direct elections, and even jumped by 86.98 percent in 2009. In 2014, the index still managed to record an impressive 22.29 percent increase.
“These figures are proof that an election [causes] positive sentiment for the JCI, so I think this year’s [election] will probably have the same effect as before,” Poltak said during a market outlook event in Jakarta.
He predicted that the JCI would rise regardless who would win the five-yearly political contest.
One of the main reasons for Poltak’s confidence about the post-election market was that he believed the country’s financial market had matured, as Indonesia’s capital market seemed to have been moving on its own, separate of current political events.
