ILLUSTRATION. Foreign investors recorded a net sell or net sell last week (13 July 2020 – 17 July 2020).
Reporter: Kenia Intan | Editor: Khomarul Hidayat
KONTAN.CO.ID – JAKARTA. Foreign investors recorded a net sell-off or net sell last week (13 July 2020 – 17 July 2020). Quoting data from RTI Business, the net foreign selling action reached Rp 1.13 trillion.
Foreigners record net sell in the middle of the JCI which tends to strengthen up to 0.96% for the week. For your information, on Friday (17/7) IHSG closed at 5,079,585 levels. Meanwhile, on Friday trading the previous week (10/7), JCI was closed at the level of 5,031,256.
CSA Institute President Director Aria Santoso observed that the net sell-off was carried out by short-term oriented foreign investors who took advantage of the momentum of positive sentiment.
“So that absorption from domestic investors is more optimal at a pretty good price,” explained Aria to Kontan.co.id, Saturday (7/18). As for the long-term oriented foreign investors, they still survive on the stock exchange.
Also Read: The number of IPOs in BEI is the largest in ASEAN during the first semester of 2020
Meanwhile, Pilarmas Investindo Analyst Okie Ardiastama explained, foreign investors continued to register net sell in the midst of domestic market conditions that are marked by positive sentiment because they tend to wait for the impact of fiscal policy rather than monetary policy.
Just so you know, last week the stock market was boosted by positive sentiment from the cut in the 7-day Reverse Repo Rate (7DRRR) of Bank Indonesia (BI) to 4%, from the previous 4.25%.
“Monetary policy indeed has quite an impact on exchange rate stability and yield bonds in recent months, but have not been able to have an impact on the real economy, “Okie explained when contacted by Kontan.co.id, Saturday (7/18).
According to Okie, this has not been able to increase investor confidence to re-enter the capital market. Thus, the increase in the JCI which was driven by monetary policy was only temporary.
He added, market participants considered the domestic industry had not been able to recover, although it would be better than the previous months. These conditions make blue chip stocks that have jumbo market capitalization still risk fluctuating.
Also Read: Peek at the prospect of the JCI next week, can it still strengthen?
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