JCI Gains over 'Luhut Effect', Foreign Buys



Mahinda Arkyasa

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  • TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) ended Wednesday, November 18, 2020, trade within the safe territory, supported by foreign buys and other sentiments, including Coordinating Minister for Maritime and Investment Affair's announcement regarding Indonesia's nickel sector.

    The index gained 0.5 percent to close at 5,557.52 and the leading stock index, LQ45, climbed 0.44 percent to 885.65. Meanwhile, foreign investors recorded a net buy of IDR 722.31 billion.

    According to Bina Artha Sekuritas analyst M Nafan Aji Gusta, market players are in a good mood; appreciative of the fast and steady progress of Covid-19 vaccine development globally. The market is also still quite happy over Biden's win in the US presidential elections.

    "The market is also appreciative of Luhut Pandjaitan's announcement that LG Chem Ltd will sign a deal to build an electric car battery factory in Indonesia this week," Nafan said on Wednesday, November 18, 2020

    Luhut's statement helped the mining index to record a 1.36 percent gain. Five other sectoral indices also posted gains, including banking and finance, and infrastructure. 

    Coordinating Minister of Maritime and Investment Affairs Luhut Binar Pandjaitan announced that South Korean company LG Chem Ltd.; a world-class battery producer, will sign an investment deal to help boost Indonesia's nickel downstream industry by building an EV battery factory.

    "If there are no changes, LG from Korea will sign [the agreement] this week," Luhut said on Tuesday, November 11.