The Indonesian Stock Exchange (BEI) Composite Stock Price Index (IHSG) on Monday opened down 0.14 points or 0.00% to 7,505.10. Meanwhile, the group of 45 leading shares or the LQ45 Index fell 0.01 points or 0.00% to 912.59. The Lotus Andalan Sekuritas Research Team projects that the JCI has the potential to rebound (turn stronger) amidst the ‘wait and see’ attitude of market players towards the United States Presidential Election (Pilpres).
“Market players tend to be cautious ahead of the US Presidential Election on November 5 2024 and the Fed’s FOMC announcement. JCI at the beginning of this week has the potential to rebound in line with positive sentiment from global indices,” said the Lotus Andalan Sekuritas Research Team in its study in Jakarta, Monday .
Domestically, on Tuesday this week (5/11) there will be a release of economic growth for the third quarter of 2024 by the Central Statistics Agency (BPS), which is expected to decline in line with the weakening of people’s purchasing power and consumption, as well as the absence of religious holidays.
On Wednesday (6/11), the Central Statistics Agency (BPS) will announce the amount of Gross Domestic Product (GDP) for the third quarter of 2024 and it is estimated that GDP will remain relatively stable at above 5 percent.
Meanwhile, the United States (US) stock market in trading last Friday (1/11) managed to rebound, even though the labor market weakened, the Dow Jones index rose 288.73 points or 0.69% at the level of 42,052.19, the S&P 500 index rose 0.41% to 5,728.80, while the Nasdaq Composite jumped 0.8% to 18,239.92. (Ant/Z-11)
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**Interview with Dr. Rina Soetomo, Financial Analyst at PT Investasi Mandiri**
**Editor:** Good morning, Dr. Soetomo. Thank you for joining us today. The Jakarta Composite Index, or IHSG, is currently sitting at 7,505.10 points. What are your thoughts on this slight decline?
**Dr. Soetomo:** Good morning! Yes, the IHSG opening down by 0.14 points may seem minimal, but it reflects a cautious sentiment among investors, especially ahead of significant events like the US Presidential Election, which can impact global market trends.
**Editor:** Absolutely. How do international events, such as the US elections, typically influence the Indonesian market?
**Dr. Soetomo:** Global events often create uncertainty, leading to volatility in emerging markets, including Indonesia. Investors might adopt a ‘wait and see’ approach, which tends to limit trading activity and can result in fluctuations in stock prices, like we’re witnessing with the IHSG.
**Editor:** Given this context, do you anticipate a rebound in the IHSG soon?
**Dr. Soetomo:** Potentially, yes. Rebounds are possible once the political landscape becomes clearer post-elections. Investors may find opportunities in undervalued stocks, which could push the IHSG upward, especially if corporate earnings remain strong.
**Editor:** That’s an interesting perspective. What sectors do you recommend monitoring for potential growth in this environment?
**Dr. Soetomo:** I suggest keeping an eye on sectors that are historically resilient during uncertain times, such as consumer goods and healthcare. Additionally, tech stocks might present interesting opportunities given the ongoing digital transformation.
**Editor:** Thank you, Dr. Soetomo, for your insights. It will be interesting to see how the market responds in the coming weeks.
**Dr. Soetomo:** Thank you for having me! It’s certainly a dynamic time for investors in Indonesia.
