Referendum results in UK showed that Brexit supporters won with 51.8% of the total votes, rocking global financial markets. It is projected to cause volatility in the stock market and money market in the short term. Its impact on the Indonesian economy is considered insignificant and the stock market will likely return to its normal condition next week, or even stronger if there is good news from the Parliament on Tax Amnesty Law.
PT Sinarmas Sekuritas estimated that Composite Stock Price Index (JCI) will be unstable following the Brexit decision and the movement in a number of global exchanges. If JCI is rectified deeply, Sinarmas Sekuritas recommends investors to accumulate shares of blue chips in anticipation of the announcement of passage Tax Amnesty on Tuesday (28/6). Stocks that were chosen by Sinarmas Sekuritas until the end of June 2016 include PT Bank National Savings Tbk (BTPN), PT Mitra Pinasthika Mustika Tbk (MPMX), PT Bumi Serpong Damai Tbk (BSDE), PT Bukit Asam Tbk (PTBA ), PT Astra Agro Lestari Tbk (AALI), and PT Gudang Garam Tbk (GGRM).
At the same time, PT Daewoo Securities Indonesia predicts that UK’s decision to exit the EU membership will lead to uncertainty in the global financial markets and encourage foreign investors to remove assets in developing countries that are considered riskier, including in Indonesia. “We prefer the conventional approach to reducing exposure in the stock,” said Taye Shim, Head of Research at Daewoo Securities. The Company disposed PTBA and PT AKR Tbk (AKRA), and is reducing exposure in PT Waskita Karya Tbk (WSKT) from 5% to 2%. Daewoo increased exposure in PT Aneka Tambang Tbk (ANTM) by 5% since due to uncertainty, investors will likely hunt for gold so that it becomes a positive sentiment for the stock.
At the close of trade on Friday (24/6), stock index fell by 0.8% to 4834.57 points, higher than the first session with a decline of 2.3%. Foreign investors recorded a net buy of Rp 587.8 billion. The rupiah was weakened by 0.23% to a level of USD 13 296 per US dollar. (*)
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