Market Reacts Negatively Towards Prabowo's Statement
23 July 2014 17:16 WIB
TEMPO.CO, Jakarta - The surprising statement made by presidential candidate Prabowo Subianto who denied the election process does not change the outcome of the presidential election.
Howoever, Prabowo's statement had resulted in negative effects for the Jakarta composite index (JCI) in the Indonesia Stock Exchange yesterday, causing it to drop by 43.60 points (0, 85 percent) to a level of 5.083,52, and further lower to 5.020.
Analyst from First Asia Capital David Nathanael, said that Prabowo’s statement had caused uncertainty in the stock market. "The market is worried that the political situation will escalate so they decided to sell their shares," he said.
Prabowo claimed that the election was unfair and un-democratic because many of the recommendations by the Election Monitoring Agency (Bawaslu) were not applied by the General Election Commission (KPU).
Today, index levels are still fluctuating between the range of 5.000 to 5.100. The upcoming long holiday season is expected to create a trend for investors to sell their shares. "The negative statement by Prabowo is seen as a momentum to gain profits," said David.
PDAT | M. AZHAR