JCI Rallies on Jokowi Inauguration

TEMPO.CO, Jakarta - Indonesia's share market has begun to rally following the inauguration of Joko Widodo as the 7th President of Indonesia. The Jakarta Composite Index (JCI) has showed positive movements since trading began on Monday morning, October 20, 2014.

The index shot up by 0.79 percent, from 5,028.946 points recorded at the end of trading last week, to 5,068.583 points on Monday morning. In the first half hour of trading, the Index hovered between a peak at 5,096.277 and a trough of 5,067.879.

The positive boost to the Index is expected to continue now that Joko Widodo has been sworn in as president. The "Jokowi Effect" is predicted to positively affect investors' approach to trading in the beginning of the third week of October.

The head of research at Mega Capital Indonesia, Helen Vincentya, said the "Jokowi Effect" was a good sign that signified investors' confidence in the future direction of Indonesia. "Market players are hoping that the new administration can speed up the development of a sustainable economy," she said.

Helen recommends investors to keep an eye out for shares in banking and construction, since the value of the shares are on the uptrend—even without the so-called "Jokowi Effect". For example, the banking sector is being boosted by the recent release of a number of banks' summary of finances, which showed that despite a possible dip in profits, the growth prospect remained positive in the third quarter of 2014. 

FERY FIRMANSYAH