Market Welcomes New Government
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Selasa, 22 Juli 2014 00:14 WIB
TEMPO.CO, Jakarta - The day before the Election Commission's (KPU) announcement of the final voting results, investors bought stocks in bulk.
On yesterday's trade, a market bullish on Joko Widodo-Jusuf Kalla's win managed to push the Jakarta Composite Index (JCI) up by 40.10 points (0.79 percent) to close at 5,127. Six billion shares were traded for a total value of Rp6.1 trillion.
As of Monday afternoon, the KPU completed the count in 17 provinces. So far, Joko Widodo and Jusuf Kalla are winning in most provinces. Construction and infrastructure stocks gained, in relation with Joko Widodo's promise to boost infrastructure development if he is elected president.
According to Mega Capital Indonesia analyst Helen Vincentia, the market is not too worried about a possible dispute that could bring the election results to the Constitutional Court. She said that the voting margin between Jokowi and Prabowo's camps are quite large, ranging between two to three million votes.
Today the Indonesian market will welcome the new president elect who will lead the country for the next five years. Investors are hoping that the new government will be capable of promoting economic growth, narrowing the deficit, and increasing business certainty.
Helen reminded investor not to get carried away with the euphoria, and remain wary of profit-taking that may occur after the election.
The KPU's announcement would be the culmination of JCI's long rally that started in April's legislative elections. There is also the fact that the country is getting ready for a long Idul Fitri holiday. "It is likely that investors would use the long holiday as a moment to gain profit," she projected.
PDAT | M. AZHAR