JAKARTA – The general election that is currently taking place in the United States has caught the attention of market players. This is because whoever is elected to be the next US President will definitely have an impact on the global capital market. Including the Indonesian capital market.
In line with the vote counting process that is taking place in Uncle Sam’s country, the Composite Stock Price Index (JCI) collapsed in the red zone at the close of the market today, Wednesday (4/11/2020) WIB.
In fact, at the beginning of trading until the end of the first session, the composite index walked smoothly in the green zone.
Until the close of trading at 3:00 p.m. WIB, the JCI corrected by 1.05 percent or 54.25 points to 5,105.19. During the day, JCI was moving in the range of 5,105.19 – 5,188.
So, what will the actual impact of the US election on the Indonesian capital market. If Donald Trump manages to maintain his position as US President? Or vice versa, Joe Biden emerged victorious this time?
Head of Equity Trading at MNC Sekuritas Medan Frankie Wijoyo sees that Indonesian capital market investors are still waiting and waiting for the complete results of the US Election.
Various Business Sectors Predicted to Experience Increase in the Post-Presidential Election of the USA
He said, if Trump wins, the JCI might increase, especially with the discourse about the extension of theGeneralized System of Preferences (GSP), namely the import duty facility for Indonesian products to the US, plus a Limited Trade Deal (LTD).
“Both of these things will roll out if Trump returns to office,” Frankie said, Wednesday (4/11/2020).
Frankie thinks this is significant enough to boost the income of Indonesian issuers, especially in the manufacturing and labor-intensive industries.
This sentiment has also helped boost stocks that have been flat for a long time, such as PT Sri Rejeki Isman Tbk. (SRIL), PT Integra Indocabinet Tbk. (WOOD) and PT Pan Brothers Tbk. (PBRX).
On the other hand, if Biden becomes the number one person in the US. Frankie said that many observers think the capital market will corrected, including the JCI, because Trump’s proposed policies may be delayed.
However, from Biden’s style, which is considered more cooperative in speaking, there is a possibility that the globalaka the trade war,trade war, can subside a little so that the stretching of industry, especially in China and the US, can run in balance.
As a result, this will have a significant impact on issuers in Indonesia’s natural resource sector. Such as CPO, coal, and basic industries. In addition, the nickel industry is also likely to prosper along with the renewable technology automotive trend.
“It is necessary to be interested in Biden’s work program if chosen. One of which is the diversification of the use of fuel for energy. As a step to reduce the impact of Global Warming,” added Frankie.
Issuers that also have a nickel portfolio can be boosted. Such as PT Aneka Tambang Tbk. (ANTM), PT Vale Indonesia Tbk. (INCO), PT Harum Energy Tbk. (HRUM), and PT Pelat Timah Nusantara Tbk. (NIKL).