JAKARTA. Foreign funds appeared to start returning to the stock market. Last week, foreign investors booked a net buy of Rp 732 billion. This achievement is better than the previous week, while stock market recorded a net sell of Rp 438 billion.
Foreign investors booked a net sell as much as Rp 863,70 billion since the beginning of the year. But this number is much better than the beginning of 2016. During January 2016, foreign investors recorded a net sell of Rp 2.32 trillion
Analyst at Parama Binaartha Securities Reza Priyambada said that currently foreign investors tend to take the position of short-term trading for blue chips shares, while waiting for the release of 2016 financial statements of the listed companies.
"Net buy has started in the last week, using the momentum of weakening JCI (Jakarta Composite Index) ahead of Trump’s inauguration,” Reza told KONTAN, Sunday (29/1).
Head of Research at Asjaya Indosurya Securities William Surya Wijaya also believes that the release of 2016 financial statements will encourage foreign investors to re-invest. He is convinced that in average, the issuers have positive performance positive performance.
On the other side, the confidence of domestic investors has brought significant impacts to domestic economy.
Indonesia Stock Exchange (IDX) recorded that the ownership of domestic investors reached 45.88% during the last week. This is the highest percentage of domestic investors during the recent ten years.
Analyst at Mirae Asset Sekuritas Indonesia Heldy Arifien said that the Trumponomic sentiment and the declining foreign liquidity have led the domestic investors to be more dominant.
Reza is optimistic that foreign investors will continue booking net buy at the end of 2017. The index in the US, as well as the index in the Europe apparently will be stronger. This will have positive impact to JCI. Let alone, rupiah exchange rate has started appreciating.
However, market will be less volatile. "The lack of driving sentiments will lead foreign investors to take a short term position," said Reza.
According toWilliam, the infrastructure and commodities shares will remain the favorites in this year. He also predicts that the shares of consumer sector will be improving.
(Muhammad Farid/Translator)
