Reshuffle Fails to Generate Positive Sentiment, Analysts Say

TEMPO.CO, Jakarta - Changes in President Joko "Jokowi" Widodo's economic ministers claimed to be unable to halt negative corrections experienced by the Jakarta Composite Index (JCI) and Rupiah exchange rate. As Wednesday, August 12, 2015, trading session closes, the JCI drops by 143 points (3.1 percent)  to a level of 4,479,9 while the Rupiah managed to experience a small correction to a level of Rp. 13,799,9 per US Dollar.

Fidy Yuliansyah, an analyst for Monex Investindo Futures, asserted that investors were not too optimistic with the new economic ministers. Fidy explained that the considerably neutral reaction displayed by the stock market indicated that market players prefer to wait for the new ministers to show their performance.

Fidy added that reshuffle often resulted positive sentiments in the stock market. However, given the current absence of positive sentiment implied that investors are unfamiliar and uncertain with the new ministers.

Similarly, an analyst from OSO Securities Rifqiyati, said that the recent reshuffle has failed to drive the stock market towards a better direction. Investors, according to Rifqiyati, decided to wait and refuse to be reckless in putting their hopes on the new ministers.

PDAT | MEGEL JEKSON