Window dressing has started. Pay attention to the recommendations of analysts’ preferred stocks

ILLUSTRATION. Market participants started window dressing a little earlier this year, so that the JCI increased significantly in November.

Reporter: Kenia Intan | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. The Jakarta Composite Index (JCI) has strengthened significantly over the past month. Quoting data from RTI Business, during the month, the JCI increased 12.77% to the level of 5,783,335 until Friday (29/11).

Head of Research at NH Korindo Sekuritas Indonesia, Anggaraksa Arismunandar, observed that the significant strengthening of the JCI was driven by various positive sentiments that colored the market throughout November 2020. Among them, the development of clinical test results of several Covid-19 vaccine candidates announced by Pfizer, Moderna, and AstraZeneca.

Another positive sentiment came from the results of the United States (US) election which was won by Joe Biden. This sentiment was followed by the announcement of the cabinet candidate Joe Biden, which further strengthened the rise in global exchanges. This has also triggered the flow of foreign investors’ funds to resume their activities net buy large enough.

Anggaraksa did not deny that market players had started window dressing which is slightly faster this year, namely in November 2020. So it is not surprising that the JCI has increased significantly in the last month.

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Despite the action window dressing has become one of the sentiments that have raised the market lately, Anggaraksa predicts, window dressing can still hoist the JCI in December 2020.

“The increase continued in December, although it was not too aggressive, between 2% and 3%,” he told Kontan.co.id, Sunday (29/11). The insignificant strengthening took into account the JCI, which had increased by more than double digits.

Until the end of this year, the JCI increase is expected to be moderate. Given, the number of trading days is scheduled to be shorter due to cut leave at the end of the year. He estimates, JCI will move in the range of the level of 5,650 to 5,900. According to him, there is no need for other sentiments for the JCI to experience growth, because naturally investors still need to maintain their portfolios.

Not much different, Head of Research for Praus Capital Alfred Nainggolan observed, the strengthening of the JCI over the past month was driven by various sentiments. One of them is the increasing number of domestic and foreign investors who are buying. This is influenced by the macroeconomic landscape, for example, Joe Biden who won the US general election. The victory gave hope that the escalation of the trade war would decline, which in turn had an impact on the economic recovery process.

Seeing this strengthening momentum, market players took advantage of it to window dressing. Just so you know, window dressing is an effort to improve the performance portfolio at the end of the year. So that the report presented later can be maximized.

“Have potential window dressing, but the increase may not be as big as in October and November, “he told Kontan.co.id, Sunday (29/11).

Also Read: Foreigners sold many of these stocks in the week despite the JCI strengthening