The Window Dressing Phenomenon Potentially In November 2024, This Is The Factor

Indonesian capital market (Photo: dock. Antara)

JAKARTA - The window dressing phenomenon in the Indonesian capital market is predicted to occur in November 2024.

Head of Investment Information Mirae Asset Sekuritas Martha Christina explained, if the domestic capital market moves volatilely during the transition of Indonesia's new government and the General Election (Pemilu) of the United States (US) in November 2024, then there is the potential for a window dressing phenomenon to emerge.

"Because from October to November (2024) there is still a new cabinet and in November there is a US presidential election. And if the market is volatile, there is a potential window dressing," Martha said, quoting Antara.

On the other hand, Martha said the potential for window dressing in the domestic stock market is quite low amid the movement of the Composite Stock Price Index (JCI) which tends to strengthen throughout August and September 2024.

"So if we look at the potential for window dressing, if in the last two months the JCI is still tight, maybe the window dressing is not too much because the increase (JCI) is also quite large," said Martha.

Furthermore, he estimates that Indonesia's stock market will be better next year, so that it will encourage customers to continue to invest in these months.

He revealed a number of interesting sectors to collect market participants, including the banking sector, telecommunications, property, and consumers.

Previously, Mirae Asset Sekuritas targeted the JCI by the end of 2024 to reach the level of 7,915 from the previous 7,585, which would be supported by the entry of foreign funds and cutting the benchmark interest rate.

Head of Research & Chief Economist Mirae Asset, Rully Arya Wisnubroto believes that foreign capital flows and the Fed's interest rate reduction will support six main sectors, including the banking sector, non-cyclical consumption goods, cyclic consumption goods, pharmaceuticals, industry, and telecommunications.

Meanwhile, window dressing is an action that is usually done by investment managers (MI) and issuers to beautify portfolios or the performance of financial reports.

Through this strategy, the performance of a managed portfolio of funds or issuer financial reports will become increasingly attractive in the eyes of investors or shareholders, where the window dressing phenomenon is closely related to the other two moments, including Santa Claus Rally and January Effect.