IHSG Projected to Remain in Green Zone

TEMPO.CO, Jakarta - The Constitutional Court's (MK) decision to reject the lawsuit filed by the Prabowo-Hatta presidential ticket regarding the election result dispute case will have a positive impact on the Jakarta Composite Index (JCI), which is predicted to remain in the green zone at around 5,150-5,185 points, while resistance is predicted to be at 5,212-5,218. 

"This prediction is based on the assumption that the market can continue to function normally sans any significant disruptions stemming from the MK's announcement," said the head analyst for Trust Securities, Reza Priyambada, in an e-mail to Tempo, Friday, 22 August 2014.

According to Reza, if the market is negatively affected by the ruling, the index is hoped to be able to remain within its support and resistance levels, which are predicted to be around 5,120-5,135 points and 5,209-5,212 points, respectively. "Especially considering that people have already started to buy shares in response to MK's announcement of the ruling yesterday," he explained.

The JCI is predicted to move about slightly if not slightly weaken as market players choose to wait-and-see the actual impact of the ruling on the ground, said Reza.

In the final hearing of the election result dispute case, MK unanimously rejected the electoral dispute lawsuit filed by Prabowo-Hatta's advocacy team. "The court has decided to reject the lawsuit in its entirety," said MK chief justice Hamdan Zoelva when announcing the ruling on Thursday evening, August 21, 2014.

MK ruled that the Prabowo-Hatta advocacy teams had failed to provide convincing and relevant evidence to support the allegations contained in their lawsuit. The pair wanted MK to overrule the General Elections Commission (KPU) announcement on July 22, which declared the Joko Widodo-Jusuf Kalla presidential ticket as the winner of the 2014 Presidential Election, winning by 8,4 million vote difference ahead of Prabowo-Hatta, on the basis of structural, systematic and massive violations conducted by KPU and the Jokowi-JK pair.

AYU PRIMA SANDI