Analyst: The Impact Of The Reshuffle On The Stock Market Is Still 'Limited'

Photo: Doc. Antara

JAKARTA - Director of Research and Investment of Pilarmas Investindo Sekuritas Maximilianus Nico Demus said that the cabinet's reshuffle impact on the Indonesian stock market was still limited.

"So far, the political dynamics that have an impact are still limited to the stock market. Because the change is also only part of the ongoing transition process between Pak Jokowi and Pak Prabowo," said Nico Demus, quoted from Antara, Monday, August 19.

The current transition, according to him, depends on each other's point of view.

"From a positive side, this is a step to simplify the transition period and maintain sustainability so that it can run faster," said Nico Demus.

He explained that market participants are still observing global economic data, such as waiting for Jerome Powell's appearance in Jackson Hole, US employment data, and The Federal Open Market Committee (FOMC) Minutes Meeting.

"Nevertheless, the inauguration and process of his cabinet will steal the attention, because the market will see who will occupy the important positions," said Nico Demus.

He continued, so far the sentiment is still the same, namely perceptions and expectations of lowering the Fed's benchmark interest rate in September 2024, which prompted market movement on Monday 19 August.

However, according to him, currently many market players seem doubtful regarding the policy of Fed Chairman Jerome Powell who will lower his benchmark interest rate in September 2024.

"Therefore, although optimistic, there are still doubts that make the JCI movement look forward and backward," he said.

Today, President Joko Widodo inaugurated Bahlil Lahadalia as Minister of Energy and Mineral Resources (ESDM), former Indonesian Ambassador to the United States Rosan Roeslani as Minister of Investment/Head of the Investment Coordinating Board (BKPM), and Supratman Andi Agtas as Minister of Law and Human Rights (Menkumham).