Jakarta, CNBC Indonesia – Market players are again amazed by the behavior of foreign investors on the Indonesia Stock Exchange (IDX) in today’s trading, because after yesterday (15/9/20) foreign funds that came out of Rp. 1 trillion were observed in today’s trade, foreigners fled with an equally large number.
Recorded trade data, foreign investors back leave as much as Rp 983 billion on the regular market today with sThe shares that are mostly sold by foreigners today are PT Bank Central Asia Tbk (BBCA) with net sales of Rp. 506 billion and PT Bank Rakyat Indonesia Tbk (BBRI) who recorded net sell amounting to Rp 83 billion.
The outflow of foreign investor funds is a worrying thing because foreign investors hold 49.95% of non-script, alias scripless shares circulating on the IDX, according to KSEI records.
For information, stock scripless is a listed shares of conversion ke in digital electronic form. The rest, there are still shares in scrip form thatusually held by controllers companyn recorded.
If foreign sales continue and there are no ‘money-making’ local investors who can afford foreign goods, then the chances of IHSG being stressed into the red zone will be higher.
During the past week, foreign investors have been keen to carry out the stock lego action. It is recorded that the funds that have been withdrawn by foreigners in the past week have reached Rp. 5.09 trillion.
Again, BBCA is the victim of violence against foreign selling. It was recorded that during the week, foreigners ran away from BBCA shares amounting to Rp 2.8 trillion. So that from half net sell foreigners last week carried out in banking shares with the largest capitalization in Indonesia.
Even if it is withdrawn for a period of 3 months, the foreign selling action on the IDX reaches Rp. 28.77 trillion, but in this period the shares of PT Telekomunikasi Indonesia Tbk (TLKM) are the shares with the largest selling action of foreign investors. During the last 3 months, TLKM’s shares have been disposed of by a foreigner amounting to Rp 5.7 trillion.
However, an unbelievably large number will appear if foreign selling is calculated since the beginning of the year (YTD). During the current year, foreigners recorded Rp. 54.81 trillion in funds in the regular market, while in all markets there was a net sell of Rp. 38.3 trillion, due to the purchase of shares of PT Bank Permata Tbk (BNLI).
PT Telekomunikasi Indonesia Tbk (TLKM) shares won the most foreign sales during the year, namely Rp. 8.7 trillion.
Although a lot of foreign funds came out, transactions in the stock market were still high. The average transaction value reached Rp. 7.9 trillion per day. Even though the transaction value had dropped significantly at the start of the pandemic, but in the last month it has increased dramatically.
Local investors are dominant in trading on the stock stock market. Based on IDX data, local investors control 64% of the transaction value and foreign 36%, year to date.
This means that the selling action of foreign investors no longer causes the JCI to fall deeply. In addition, retail investors are on an annual basis already increased 22% from last year to 3 million investors as of August 2020.
In fact, foreign selling on local exchanges is like two sides of a coin. On the one hand, the continuous outflow of foreign funds from the IDX, the upward movement in the JCI tends to be depressed.
However, on the other hand, with the departure of foreign investors from the local bourse, the potential for domestic investors to become ‘hosts’ on the stock exchange itself is even more open, especially if you see the valuation of listed companies on the stock exchange is still relatively cheap with an average PER of 14 JCI. , 37 times so that it is still attractive to long-term investors.
CNBC INDONESIA RESEARCH TEAM