Jokowi's Win Expected to Lift JCI Today
23 July 2014 01:16 WIB
TEMPO.CO, Jakarta – After a disputed tally crushed stocks and the rupiah on Tuesday's trade, the Jakarta Composite Index (JCI) is expected to rebound today following the declaration of Joko "Jokowi" Widodo's win.
William Surya Wijaya, analyst from Asjaya Indosurya Securities, projected last night's announcement by the Elections Commission (KPU) will be responded positively by the market.
On Tuesday, the JCI closed 0.9 percent lower at 5,083.52 after struggling during midday, where it fell by 2.2 percent following Prabowo Subianto's rejection of a tally suggesting he had lost his presidential bid to Jokowi.
Later in the evening, KPU announced the Jakarta governor won by a six-percent margin, garnering 53.15 percent of some 130 million votes that was casted on July 9.
However, William said the stock market euphoria will be brief. "It usually occurs for just two to five days," William told Tempo, Tuesday.
William suggested investors who often play in the medium and long term to be more restrained. "No need to rush in selling stocks during the momentary euphoria--except for investors who are taking profits in the short term," he said.
William said the JCI will gain following the results announcement, although it will not climb as high as it did in the last few days.
Investors may have to wait until August before knowing for sure who will be Indonesia's next leader if Prabowo decides to file an appeal to the Constitutional Court. Prabowo's camp had accused KPU as the election organizer of being unfair, lacking transparency and violating the election rules.
PAMELA SARNIA | RIRIE RANGGASARI
