JAKARTA - The management of the Indonesia Stock Exchange (IDX) stated that the COVID-19 pandemic has had a major impact on the country's stock market. Almost all trade data has decreased significantly from the beginning of 2020 until today.
President Director of the Indonesia Stock Exchange, Inarno Djajadi said, during the year until the close of trading on April 17, 2020, the JCI was recorded to have dropped 26.43 percent to 4,635. The market capitalization (market cap) also fell by 26.11 percent to Rp5,368 trillion.
"The average daily frequency fell 1.49 percent to 462,000 times. And even more painful, the average daily transaction value fell 23.84 percent to Rp6.34 trillion," said Inarno via a video conference with journalists, Friday, April 24.
He said the drop in the JCI was in line with all global stock indexes. Austria experienced the highest, while the highest decline in market cap was in the United States of US $ 3 trillion.
Furthermore, said Inarno, the movement of the JCI and transaction value decreased significantly in March 2020. At that time, after President Joko Widodo said that there was already one person who was positively infected with the COVID-19 virus.
Meanwhile, externally, at the same time the corona outbreak has spread to various countries. This has made global and domestic investors respond negatively to financial markets both at home and abroad.
"The situation of uncertainty continues until the JCI hit its lowest level on Tuesday, March 24, 2020, the index fell 37.49 percent compared to last year's position, and hopefully this will be the peak of the deepest decline this year," said Inarno.
Inarno conveyed, the deepest IHSG correction in history was minus 50.6 percent. It happened during the 2008 global financial crisis that was caused by the Subprime Mortgage case in the US.
"Even though we see that the index has decreased, our current trading activity is quite good. The average trade in March was Rp. 7.9 trillion per day, an increase from January and February," said Inarno.
Inarno said, there was a decline in all sectoral indices, the highest in share prices in various industrial sectors, amounting to -40.60 percent. This happened with the decline in share prices of large companies in various industries, one of which was PT Astra International Tbk (ASII).
ASII's share price was recorded down 40 percent from the previous. In addition, the highest decline in market capitalization value occurred in the financial sector. The market capitalization value of this sector decreased by IDR 708 trillion.
In this uncertain situation, foreign investors left the domestic stock market and switched to investment instruments with a safe haven character.
According to IDX records, there was a net sell of IDR 14.87 trillion during the same period. The largest period of withdrawal of foreign funds on the Indonesian stock exchange occurs at the end of February to April 2020.
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