Central Java Capital Market Unaffected by Political Momentum

TEMPO.CO, Semarang - Semarang Capital Market Information Center (PIPM) said the current political events did not have much effect on capital market investors in Central Java. This condition was in contrary to previous analyses forecasting that that the capital market in Central Java would drop in the political year.

“Political momentum does not really affect the capital market in Central Java,” said Semarang PIPM Stephanus Cahyanto on Monday.

Cahyanto’s statement is based on the increase in the number of investors, which has grown by 1,000 from the beginning of the year to March 2014. Previous predictions said the number of investors would slip by around 25 percent. “Instead, it rose by 1,000, which means that the political momentum does not affect the stock market in Central Java,” said Cahyanto.

Cahyanto said most investors in Central Java were beginners that relied on long-term investment, and that they were different from those in Jakarta, who were inclined to seek short-term gain. “Financiers in the capital market in Jakarta often calculate their investments, relate them to the general election momentum, including the presidential election,” he said.

He added that capital markets are also shaped by financial reports from Europe and Asia, including China, which are mostly positive. This situation has become the footing for other financiers to invest their money in the capital market. 

EDI FAISOL