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Indonesia's stock market expected to rise after Biden victory
Mirae Asset Sekuritas research head Hariyanto Wijaya told The Jakarta Post that he believed a win for then-Democratic presidential candidate Joe Biden would result in positive movement in the Jakarta Composite Index (JCI), the main gauge of the Indonesia Stock Exchange (IDX).
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The IDX logo is seen in front of a giant screen that displays information of the movement of stock prices at the Indonesia Stock Exchange (IDX), Jakarta, on March 13, 2020. (JP/Seto Wardhana)
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he result of the United States presidential election is expected to have a lasting, positive effect on Indonesia’s stock market in the mid- to long-term, helping to offset negative sentiment among investors as a result of the recession, analysts have said.
Mirae Asset Sekuritas research head Hariyanto Wijaya told The Jakarta Post that he believed a win for then-Democratic presidential candidate Joe Biden would result in positive movement in the Jakarta Composite Index (JCI), the main gauge of the Indonesia Stock Exchange (IDX).
Joe Biden was declared US president-elect on Saturday, defeating Donald Trump.
“Biden’s approach to China is expected to be more predictable than [President Donald] Trump’s, which was more impulsive, and who often changed his statements,” he said in an e-mail on Thursday.
The analyst also expected the US dollar to weaken under Biden, resulting in increased commodity prices. This would help Indonesia as it was a significant commodity exporter, he said.
“I expect the JCI to continue on its upward trajectory at least until the end of 2020 due to investors’ forward-looking stance,” said Hariyanto.
The economic uncertainties caused by the COVID-19 pandemic have led investors to dump risky assets and seek safe havens.
