Green Wall Street, Any Good News for the Indonesian Stock Exchange Tomorrow?

Jakarta, CNBC Indonesia – The stock market of the United States (US) or Wall Street rose slightly in early trading Wednesday (20/10). This is certainly good news, the sentiment of market participants is still quite good and foreign investors have the opportunity to buy more shares in the Indonesian stock market.

Since last week, foreigners have been keen to spend on stocks in Indonesia, as a result the Composite Stock Price Index (JCI) has skyrocketed and is approaching an all-time high.

Yesterday, the JCI slightly weakened 0.04% to 6,655,999, but still very close to its all-time high of 6,693,466. From the current level to this record, the JCI is only 0.56% less.

Although yesterday the JCI weakened, foreign investors made a net purchase of Rp 654.14 billion in the regular market. Meanwhile, at the beginning of this week, the net buy was recorded at almost Rp. 1 trillion, and during last week it was Rp. 5.15 trillion.

If Wall Street is able to close today’s trading in the green zone, the chances for foreign investors to record net buys will be even greater, and the JCI has the potential to break an all-time high.

Launching Refinitiv data, the Dow Jones index opened trading today with a slight gain of 0.07%, then the S&P 500 and Nasdaq rose 0.1% each. Over time, the three indexes strengthened, the Dow Jones and S&P 500 gained more than 0.2%, while the Nasdaq was still around 0.1%.

Investors in Uncle Sam’s country are currently digesting the issuer’s profit/loss report. So far the results are encouraging, based on data from the quoted FactSet CNBC International, of all issuers in the S&P 500 that have reported earnings, as many as 82% of the results are better than analyst predictions.

Tom Lee, an analyst from Fundstrat sees Wall Street potentially rallying up to 6% again by the end of this year. The S&P 500, which is currently in the range of 4,520, is expected to reach 4,800. He saw that the sentiment of market participants is currently good, the spread of Covid-19 in America has decreased, and the economy is said to be resilient.

CNBC INDONESIA RESEARCH TEAM

[Gambas:Video CNBC]

(pap / pap)



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