Poll results showed that 51% of respondents voted for Britain to stay in the European Union (Bremain). Taye Shim, Head of Research at Daewoo Securities Indonesia, predicts that investors have calculated the Bremain scenarios. This is why in the last four days, Composite Stock Price Index (JCI) rose. Daewoo research team estimates that JCI will move in the range of 4862-4914 points as there are indications that JCI is already overbought.
Harry Su, head of research at PT Bahana Securities, said that market participants do not expect Brexit because it will lead to higher volatility in the financial markets. The exchange rate of rupiah will depreciate drastically if the referendum results show that the people in the UK prefer Brexit. Yesterday, the exchange rate of rupiah weakened by 0.09% to a level of Rp 13 298 per US dollar. However, Indonesia’s economy will not be too affected by Brexit because Indonesia’s trade exposure to the UK is not too large.
The ratings agency Standard and Poors (S&P) will cut its AAA debt rating of the UK in case of Brexit. George Soros, an international forex investor, also said that the exchange rate of pound sterling will fall by 15% against euro if the referendum decides on Brexit. This depreciation is worse than in the Black Friday of September 1992. (*)George Soros, the international forex investors, also said the exchange rate will pound slumped 15% against the Euro if a referendum to decide Brexit, this depreciation is worse than the events of Black Friday September 1992. (*)
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