Indonesia's Stock Exchange (IHSG) Predicted to Rebound After May 22, 2019 Unrest

The Jakarta Composite Index (JCI) opened at 5,944.032 points on Thursday (May 23rd). As of 09:42 WIB (Western Indonesian Time), the JCI was recorded at 6,008.497 points, strengthening by 68.86 points or 1.16%.

Observing the JCI trend since May 13th, 2019, shows a decline, but it started to rebound after the announcement of the 2019 Presidential Election results by the General Elections Commission (KPU). The JCI weakened again on Wednesday (May 22nd) and closed at 5,939.64 points, weakening by 11.74 points (0.2%). This decline was triggered by negative sentiment from mass actions in several areas of Jakarta, marked by riots. After the security situation returned to normal, the JCI has the potential to strengthen.

Besides domestic sentiment, market players are also currently observing external factors related to the US-China trade war. US media reported that the Trump administration will impose sanctions on the Chinese video security company, Hikvision. This news caused several stocks to plummet, and the Dow Jones and S&P 500 indices closed down 0.39% and 0.28%, respectively.

(Read Databoks: [Riots Push Rupiah to Rp 14,525 per US Dollar])