The JCI is projected to continue strengthening next week, this is the trigger factor

ILLUSTRATION. Optimism for global economic recovery is seen as the trigger for the increase in the JCI in trade next week.

Reporter: Ika Puspitasari | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. Composite Stock Price Index (IHSG) managed to gain 0.41% to the level of 5,783.34 in Friday trading (27/11). When viewed within a week, the JCI was successfully lifted by 3.80%.

Director of Anugerah Mega Investama Hans Kwee said there would be several sentiments affecting the JCI movement in the first week of December 2020.

Globally, the Trump administration has provided federal resources for President-elect Joe Biden’s transition to the White House, paving the way for the transition to be smooth. As the US political risk decreases due to the election conflict, it has succeeded in becoming a positive catalyst that drives the stock market up.

Furthermore, currently the financial market is very optimistic with the scenario that the vaccine will be gradually available next year and the economy will return to normal. At the start, Pfizer and BioNTech said that the vaccine test was 95% effective against the corona virus.

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After that, there is a Moderna company that claims the vaccine developed has an efficacy of 94.5% of the vaccine against Covid-19. Then there are AstraZaneca and Oxford Vaccines from England which released the success of making a vaccine with a 70% effectiveness rate against Covid-19 after phase 3 testing.

“The presence of the vaccine makes the stock market very optimistic that economic recovery will occur soon,” he said in a release on Sunday (29/11).

Still from global, the release of the minutes of the Meeting of the Board of Governors of the American Central Bank (Federal Reserve / Fed) which was held in October showed that there was a discussion on how to add accommodative monetary policy in order to help the economic recovery process due to the Covid 19 pandemic. According to Hans, additional stimulus Monetary is certainly a positive sentiment for financial markets.

Former Federal Reserve Chief Janet Yellen’s nomination as Minister of Finance received positive appreciation from the market and raised hopes of a major fiscal stimulus. Yellen, considered a labor economist, is expected to increase government spending to push the economy out of recession due to the coronavirus pandemic.

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Furthermore, data on the increase in the number of people filing jobless claims of 778,000, up from 742,000 in the previous week in the United States, is also a market concern.