Nationalism in Capital Market After Thamrin-Sarinah Bomb Terror
Nationalism in Capital Market After Thamrin-Sarinah Bomb Terror
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JAKARTA - Indonesia has often experienced situations such as terrorist bombings that occurred on Jl MH Thamrin and Sarinah region on January 14, 2016 last. Of course this has a negative impact on the Indonesian economy, including capital markets, but the things that need to be analyzed again is how big the influence of this situation on the Indonesian economy, especially the capital market?
Consider the analysis of stock market observers, Hery Gunawan Muhammad in this regard in a concise and comprehensive article below:
NATIONALISM IN CAPITAL MARKET AFTER THAMRIN-SARINAH BOMB TERROR
After more than two weeks Thamrin-Sarinah bombing incident, where the day's stock index fell to the level of 4456 even though because of the invisible hand, eventually JCI closed up back at the level of 4513. The impact of unavoidable are concerns about the overall security in Indonesia especially investment climate. Various speculations arise regarding the alleged flow of funds suspected terrorists who then come to the searches in the capital market.
Authorized institution in this case INTRAC was then intervened to track it down. What psychological impact for stock investors in general? Would disrupt a sense of comfort and privacy. After concerns about asset-related taxes and reporting of investors in the stock market to disturb his peace in investing, search INTRAC course will also increase the reluctance to invest in the capital market.
This can be reflected in the decline of JCI post Thamrin-Sarinah bomb turned out to be deeper than the day when the bomb exploded, was recorded on January 21, 2016 stock index fell lowest in 2016 at the level of 4408. While the bomb is not the main factor causing the decline, but often the timing for the distribution of shares by the parties concerned with the Capital Market.
Global and regional markets, government policies, the BI rate, fluctuations in the exchange rate, oil prices and so forth into consideration for investors to sell and buy. In addition the market mechanism of supply and demand, with reference to the trading system in the Indonesia Stock Exchange in the regular market using continuous auction system, the negative news and facts can be used to penetrate the selling pressure, selling position.
With hope will follow the overall market sell-off, especially when using the identity of investors and foreign securities to give the image that foreigners out of the Indonesian market. If the price is depressed and down this is what they expected, experience in 2004 for example, when there redemptions in mutual funds, but when the price dropped, foreign actually buy the massif, contain it. Why, because after the Indonesian market is still very attractive, population, middle class people with the ability and tremendous purchasing power, consumption levels of society in general, and other natural resources, making foreign investors like to invest in Indonesia.
Motivation investors to buy and sell shares in the capital market can certainly vary, some of which are as pure investment, as well as trading and speculation, but also has evolved mindset and awareness that buying stocks is a manifestation of the spirit of nationalism. Buy shares of national companies that have gone public, can be understood as repurchase Indonesia. We are aware of how foreign investors still control more than 70 percent of the total investment in Indonesia capital market, it is no exaggeration to bomb terror two weeks ago reminds us that investment in the capital market is important. Turning on Nationalism in Indonesia Capital Market.
Hery Gunawan Muhamad
Stock Market Observers
Head of the Yogyakarta Branch and PIC Sharia Division PT First Asia Capital
Postgraduate student FIAI, UII Yogyakarta
Consider the analysis of stock market observers, Hery Gunawan Muhammad in this regard in a concise and comprehensive article below:
NATIONALISM IN CAPITAL MARKET AFTER THAMRIN-SARINAH BOMB TERROR
After more than two weeks Thamrin-Sarinah bombing incident, where the day's stock index fell to the level of 4456 even though because of the invisible hand, eventually JCI closed up back at the level of 4513. The impact of unavoidable are concerns about the overall security in Indonesia especially investment climate. Various speculations arise regarding the alleged flow of funds suspected terrorists who then come to the searches in the capital market.
Authorized institution in this case INTRAC was then intervened to track it down. What psychological impact for stock investors in general? Would disrupt a sense of comfort and privacy. After concerns about asset-related taxes and reporting of investors in the stock market to disturb his peace in investing, search INTRAC course will also increase the reluctance to invest in the capital market.
This can be reflected in the decline of JCI post Thamrin-Sarinah bomb turned out to be deeper than the day when the bomb exploded, was recorded on January 21, 2016 stock index fell lowest in 2016 at the level of 4408. While the bomb is not the main factor causing the decline, but often the timing for the distribution of shares by the parties concerned with the Capital Market.
Global and regional markets, government policies, the BI rate, fluctuations in the exchange rate, oil prices and so forth into consideration for investors to sell and buy. In addition the market mechanism of supply and demand, with reference to the trading system in the Indonesia Stock Exchange in the regular market using continuous auction system, the negative news and facts can be used to penetrate the selling pressure, selling position.
With hope will follow the overall market sell-off, especially when using the identity of investors and foreign securities to give the image that foreigners out of the Indonesian market. If the price is depressed and down this is what they expected, experience in 2004 for example, when there redemptions in mutual funds, but when the price dropped, foreign actually buy the massif, contain it. Why, because after the Indonesian market is still very attractive, population, middle class people with the ability and tremendous purchasing power, consumption levels of society in general, and other natural resources, making foreign investors like to invest in Indonesia.
Motivation investors to buy and sell shares in the capital market can certainly vary, some of which are as pure investment, as well as trading and speculation, but also has evolved mindset and awareness that buying stocks is a manifestation of the spirit of nationalism. Buy shares of national companies that have gone public, can be understood as repurchase Indonesia. We are aware of how foreign investors still control more than 70 percent of the total investment in Indonesia capital market, it is no exaggeration to bomb terror two weeks ago reminds us that investment in the capital market is important. Turning on Nationalism in Indonesia Capital Market.
Hery Gunawan Muhamad
Stock Market Observers
Head of the Yogyakarta Branch and PIC Sharia Division PT First Asia Capital
Postgraduate student FIAI, UII Yogyakarta
(rnz)
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