Due to Omicron, the JCI Rally Throughout November Has Been Erased!

Jakarta, CNBC Indonesia – The national stock market this week fell, following the major sentiment from global markets following the discovery of a new variant of the Covid-19 virus in Africa which is suspected to be more contagious and more resistant to antibodies.

The Composite Stock Price Index (JCI) on Friday (27/22/2021) dropped 2.06% or 137.79 points to 6,561,553. However, in a matter of a week, the JCI fell 2.36% or 158.7 points compared to last weekend’s closing position at 6,720,263.

The weekly correction was bigger than the previous week’s rally of 1.04%. The pressure also made the JCI slide past two psychological levels, from 6,700 to 6,500, and erased all the rally that had accumulated throughout November.

In 5 trading days this week, the main reference index of the national stock exchange strengthened for 3 days, namely Monday, Wednesday and Thursday. The biggest rally occurred on Thursday, which was 0.24%, with a total rally of only 0.37%.

Starting the week, the JCI rose slightly by only 3 points on Monday. The increase followed a positive trend in global markets regarding Jerome Powell’s confirmation to continue his duties as the head of the US central bank (Federal Reserve / The Fed).

The election of Powell is considered to provide certainty regarding the continuity of the US monetary policy plan, especially its commitment to maintain a loose monetary policy despite starting to reduce the purchase of debt securities on the secondary market (tapering off) This year.

Furthermore, the JCI was volatile following the direction of inflation in the US and the increase in Covid-19 cases in Western Europe, including in Singapore. Concerns about finding a virus variant that is more easily transmitted and can prevent new vaccinations emerged on Friday which triggered a big correction in world markets, including Indonesia, which fell by more than 2%.

Data from the Indonesia Stock Exchange (IDX) shows that the total weekly trading value reached Rp 68.8 trillion, which was obtained from transactions of 121.7 billion shares totaling 6.9 million times. Foreign investors recorded net sales (net sell) in the regular market amounting to Rp 602.6 billion.

The biggest selling action hit shares of PT Dayamitral Telekomunikasi Tbk (MTEL), where foreign investors scored net sell worth IDR 1.9 trillion. Shares of unicorn (digital start-up/startup valued at over US$ 1 billion) PT Bukalapak.com Tbk (BUKA) followed with a net sales value of Rp 1.2 trillion.

However, in terms of total transaction value, shares of PT Telkom Indonesia Tbk (TLKM) led with a weekly trading value of Rp. 3.3 trillion, followed by PT Bank Rakyat Indonesia Tbk (BBRI) and PT Bank Central Asia Tbk (BBCA) of Rp. 2 .7 trillion and Rp. 2.2 trillion.

CNBC INDONESIA RESEARCH TEAM

[Gambas:Video CNBC]

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