The performance of the Jakarta Composite Index (JCI), the main gauge of the local stock exchange, in the fourth quarter hinges on vaccine developments, analysts have said, as the progress of the COVID-19 pandemic remains an important driver of the index’ movement.
Despite several tailwinds supporting the JCI’s outlook in the second half of the year, volatility will remain, at least until a vaccine has been approved, Bank Negara Indonesia (BNI) Sekuritas said.
“All boils down to vaccine approval. We maintain our view that the approval for population use could be secured in the fourth quarter of this year or the first quarter of next year,” BNI Sekuritas research head Kim Kwie Sjamsudin told The Jakarta Post over a text message on Monday.
The firm expected the eventual approval would materially prop up the global marke...
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