Jokowi Wins Debate; Index Jumps  

TEMPO.CO, Jakarta – The Jakarta Composite Index (JCI) responded positively to Monday's presidential election debate. On Tuesday's trade, the index jumped 61 basis points (1.25 percent) to 4,946.09. Investors are back to collecting stocks that are now sold for cheaper prices after experiencing corrections.

Analyst from Trust Securities, Reza Priyambada, said that market participants realized there was no reason to sell, so they decided to return to the market and accumulate stocks. "American and Asian exchanges gave no negative signals. Therefore, Monday's correction was simply a short-lived sentiment."

According to Reza, Monday's sell-off was triggered by investors' apprehension prior to the presidential election debate. After the debate was finished, followed by survey results indicating Joko Widodo and Jusuf Kalla's superiority, the market regained confidence and responded positively.

However, Reza said the index will remain sensitive to news about the presidential and vice presidential candidates. Unfavorable news about investors' favorite candidate will be responded by selling. "This situation renders some investors hesitant; opting to wait and see until after the election result comes out," said Reza.

On the other hand, the index movement is not supported by adequate volume. Trading frequencies tend to drop ahead of the election that is concurrent with the World Cup Finals. This is also why it is difficult to predict the index's movement, because the strong support level of 4,850 bps and the strong resistance level of 5,000 bps have not been penetrated.

Today the JCI is projected to move between 4,927 and 4,998 with a tendency to consolidate. Investors are advised to purchase gradually and only accumulate at a low price, to prepare for sharp index gains. "Some stocks that can be considered include Astra International, BNI, AKR Corporindo, and Bank Mega," said Reza.

PDAT | M. AZHAR