Political instability and security risks ahead of the announcement of presidential election results on Wednesday may put further pressure on Indonesian stocks, already the second worst-performing major market in Asia this year.
The Jakarta Composite Index is down 4.6% since the start of 2019 after suffering its worst week in 13 months last week. Local stocks were sold off on Indonesia’s worse-than-expected trade balance for April and the pending weighting increase for Chinese shares in MSCI indexes, as well as the escalating trade war between U.S. and China.
Indonesian investors are more careful to invest in the Indonesian capital market under unstable security and political conditions. investors tend to wait for better information to re-invest. in this case, investors have a methodical profile that avoids high risk and analyzes the market conditions to determine the time for further investment. this is indicated by the decline of the Jakarta Composite Index by 4.6% this year. with the predicted increase in the Jakarta Composite Index at the end of the year, investors still have the confidence to invest in stocks at the right time