MK Decision and Improved Economic Data Create Positive Sentiment for JCI

JCI grew almost 1 percent after touching its lowest position throughout 2024 last Monday.

KOMPAS/MARINA EKATARI

On Monday (22/4/2024), the entire nation awaited the results of the Presidential Election Dispute Settlement (PHPU) from the Constitutional Court's panel of judges, which has been in session since March 27th.

JAKARTA, KOMPAS — The Composite Stock Price Index or IHSG grew almost 1 percent on Tuesday (23/4/2024). The Constitutional Court's decision which confirmed the results of the recapitulation of the presidential election by the General Election Commission and the improvement in economic data at home and abroad became a strengthening sentiment capital market performance.

Until the end of the first trading session, the IHSG rose by 47 points or 0.67 percent to the level of 7,120 from the opening level of 7,073. The increase in the index is supported by the rise of 265 stock prices compared to the decline of 270 stock prices.

Pilarmas Investindo Sekuritas analyzed that the positive growth of the IHSG today followed the strengthening of the regional Asian markets due to the return of investors to risky financial assets such as stocks. In addition to the decrease in political tensions in the Middle East, which was last marked by Israel versus Iran clash, the market's focus has shifted back to global economic fundamentals.

"Another sentiment comes from the Purchasing Managers Index (PMI) report for the manufacturing sector in Australia for April, which increased to 49.9 from 47.3 in March, and the PMI for the manufacturing sector in Japan increased to 49.9 in April 2024 from 48.2 in the previous month," they said in their report on Tuesday.

Also read: Capital Market Players Anticipate BI Monetary Policy

Positive data Indonesia's economy also contributed. On Monday (22/4/2024), a release from the Central Statistics Agency showed that Indonesia's trade balance had a surplus of 4.47 billion US dollars in March 2024. This achievement increased by around 3.64 billion US dollars compared to February 2024 which reached 0.83 billion US dollars. This time, Indonesia's trade balance, which recorded a surplus for 47 consecutive months, exceeded market expectations.

Another positive sentiment from within the country is the ruling on the 2024 presidential election dispute which rejects all lawsuits regarding the presidential election dispute.

This surplus contributed to Indonesia's export value rising by 22.43 billion US dollars or 16.40 percent compared to February 2024. Meanwhile, the import value in March 2024 reached 17.96 billion US dollars, a decrease of 2.60 percent on a monthly basis.

Positive sentiments from other domestic sources are regarding the decision on the 2024 Presidential election dispute which rejected all lawsuits filed by the Presidential and Vice-Presidential candidates of pairs number 03 and 01, namely Ganjar Pranowo-Mahfud MD and Anies Baswedan-Muhaimin Iskandar.

"So the elected 02 candidate pair, Prabowo-Gibran, will be the new captain for Indonesia. Certainly, this will await the KPU's decision on the appointment of the elected president-vice president. However, this provides certainty about who will lead Indonesia for the next period and encourages a willingness to reinvest in the country," they said.

Also read: Stability after the Constitutional Court's decision is a breath of fresh air for business actors

KOMPAS/HENDRA A SETYAWAN

The atmosphere during the reading of the decision on the 2024 presidential election dispute by the constitutional judge at the Constitutional Court in Jakarta on Monday (22/4/2024). The members of the General Election Commission can be seen facing away from the camera.

The President Director of PT Surya Timur Alam Raya Asset Management (Star AM), Hanif Mantiq, in Jakarta, also stated that the improvement of the Indonesian Stock Exchange's performance is influenced by investors' confidence in Indonesia's political stability after the Constitutional Court's decision to reject the demand of the presidential election dispute.

The improvement in JCI performance was also influenced by investors' confidence in Indonesia's political stability after the MK decision.

Before the decision was made, the market awaited with uncertainty, causing the IHSG to be pushed to its lowest position throughout 2024 at 7,073 on Monday (22/4/2024).

"What's interesting is that yesterday we were both waiting for the Constitutional Court's decision and several speeches by the presidential candidates when they received the decision. Today (Tuesday, 23/4/2024) market started to rebound after being negative even though it grew slightly at the end of the session. "Today (Tuesday), I predict that the JCI will grow positively," he said.

Also read: Investment Opportunities amidst High Uncertainty