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Yearender 2020: Stock market rebounds from yearlong struggles with COVID-19 pandemic
The bourse recorded a foreign net sell of Rp 47.74 trillion as of Dec. 23.
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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)
T
he stock market has hit record lows this year, haunted by the impacts of the COVID-19 pandemic, although investors recently regained optimism.
The Jakarta Composite Index (JCI), the main index at the Indonesia Stock Exchange (IDX), gained a modest 1.7 percent in 2019 to close the year at 6,299 on the backdrop of sluggish economic growth.
The index was under selling pressure through most of January due to fears over the impact of the coronavirus outbreak in China.
Meanwhile, the crackdown on stock pump-and-dump practices also pressured the market, after the investment mismanagement case of state-owned insurer PT Asuransi Jiwasraya unfolded, leading to the arrest of entrepreneurs Heru Hidayat and Benny Tjokrosaputro in mid-January.
Read also: Jiwasraya scandal sends ripples through financial industry
Following the arrests, the IDX temporarily halted trading in five businesses implicated in the investigation into the Jiwasraya case, including fishery company PT Inti Agri Resources and property holding company PT Hanson International (MYRX), according to a statement from the IDX. The Attorney General’s Office (AGO), which handled the corruption case, also blocked hundreds of investors’ accounts as a part of its investigation.
The JCI declined steeply following the AGO’s suspension order. Since Jan. 24, the JCI had declined 6.04 percent, with weekly trading having closed at 5,866.94 on Feb. 14.
