This Is A Criteria For Vice Presidential Candidates Who Are Liked By Capital Market Investors

JAKARTA - Stock market investors are considered more likely to like potential vice presidential candidates (cawapres) who are close to the business world.

Head of Research Center Mirae Asset Sekuritas Indonesia Roger MM said the capital market favorite will always be related to the business world. Previously, the market favorite was usually the president.

"But now both positions are balanced, so the vice presidential candidate has a big influence on voting," said Roger after Media Day at Pacific Century Place Tower Jakarta, Tuesday, October 17.

Roger hopes that the presence of presidential candidates (candidates) and vice presidential candidates who become market favorites can move the stock market in a positive direction, especially in the BUMN index (IDXBUMN).

"Once they declare, the stock will usually go up, now it will be their favorite, and decide on October 25. Therefore, the current market is just like this because it is waiting for who will declare the candidate for vice president," said Roger.

Roger said the movement of the Composite Stock Price Index (JCI) tends to move in a positive direction during the political year, along with the pairs of presidential and vice presidential candidates who are the favorites of market players.

"Hopefully it will soon be found out who the vice presidential candidates are from Prabowo and Ganjar. Because this will affect the direction of the market, and this year's election is more important than the elections in 2019 and 2014," said Roger.

In addition, Mirae Asset's Head of Investment Information Martha Christina said that if you look historically, the JCI almost always records strengthening in the fourth quarter every year, especially related to the momentum of window dressing activity.

However, Martha said that the JCI movement until the end of this year will still be overshadowed by the uncertainty of the heated Middle East geopolitical conditions.

"Currently, market participants' attention is still on the Palestinian-Israeli conflict and prices for petroleum and other commodities, as well as the inflation rate and economic growth of the US. We believe market conditions will be more normal at the end of the year ahead of window dressing," he explained.

Martha said that in the long term Indonesia has excellent prospects. Driven by economic stability, the rupiah exchange rate, inflation, and various economic data.

Thus, the JCI has the opportunity to strengthen in the second half of 2023 due to several factors such as high foreign investment, the potential to increase the level of community productivity and the potential for an increase in agricultural commodity prices.