Confirmation of omnibus law creation work potentially pressures IHSG on Wednesday (7/10)

ILLUSTRATION. JCI closed up 40.45 points or 0.82% higher to the level of 4,999.22 on Tuesday (6/10).

Reporter: Kenia Intan | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. Composite Stock Price Index (IHSG) almost touched the level of 5,000 at the close of trading today, Tuesday (6/10). Quoting data from the Indonesia Stock Exchange (IDX), the JCI finally closed up 40.45 points or 0.82% up to the level of 4,999.22.

Since trading in the first session, JCI moved in the green zone with the highest level at 5,023.89 and the lowest level at 4,992.48. As many as 12.35 billion shares are traded today with a trading value of Rp. 7.1 trillion. Meanwhile, the trading frequency reached 652,972 times.

Pilarmas Investindo Sekuritas analyst Okie Ardiastama observed that today’s positive movement was driven by the Work Creation Bill (RUU) passed by the House of Representatives (DPR) in a plenary meeting yesterday Monday (5/10). This approval is a positive sentiment for the market because investors tend to like bureaucratic clarity.

The positive sentiment from the omnibus law law tends to dominate the market compared to Bank Indonesia (BI) survey results regarding the Consumer Confidence Index (IKK). Just so you know, today BI released data on the September 2020 CCI which fell to 83.4. Even though in August 2020, the IKK was at 86.9.

Also Read: Work Creation Law ratified, what sector shares are eligible for lyrics in the long run?

According to Okie, the weakening of the CCI was reflected in the economic growth in the third quarter. On the other hand, the consensus has indeed projected a slowdown in September. Although he admitted, the slowdown that occurred was lower than the consensus.

Although the Omnibus Law Cipta Kerja is the sentiment that drove the JCI today, market players are still watching for further developments. This is because the domestic political situation is hot enough because the policy has triggered the labor strike movement.

“Hopefully, this action will not create a commotion and hinder production in the next few days. So that efforts to recover the economy through the effectiveness of domestic production can go according to plan,” Okie told Kontan.co.id, Tuesday (6/10).

Also Read: Rupiah still has a chance to strengthen on Wednesday (7/10)

Furthermore, Okie explained that the disrupted production will be a consideration for investors. Moreover, the current industrial conditions have been suppressed by the Covid-19 pandemic.

As for trading tomorrow, Wednesday (7/10), Okie estimates that JCI will tend to move to a limited decline in the range of 4,960 to 5,023 levels.

Also Read: JCI strengthened to 4,999 at the end of trading Tuesday (6/10), two bank shares were bought by foreigners