REPUBLIKA.CO.ID, JAKARTA -- The opening of Indonesian Composite Index (IHSG) dropped 2.78 percent or 136.72 points at 4,784 on Thursday. Excessive market expectation is the reason. Director of Indo Premier Securities, Moelonoto said that market speculated too high on legislative election's result held on Wednesday.
"They projected that Indonesia Democratic Party of Struggle (PDIP) could get 20 percent of votes," Moelonoto said on Thursday as reported by Friska Yolandha
PDIP is a party carrying Joko Widodo (popularly known as Jokowi) as a presidential candidate for 2014-2019. Earlier, the Jakarta governor has a chance to boost the index over the last few weeks. Moelonoto said that IHSG was always stronger for several weeks. An uncertain market condition is making investors to wait and see the format of inter-party coalition for presidential election.
"Majority of foreign investors sold their stocks this morning," Moelonoto added.
Jakarta Stock Exchange LQ45 Index (LQ45) also fell 2.86 percent or 23.93 points at 811.973. Analyst of First Asia Capital, David Sutyanto said that IHSG moved too quickly to welcome the election. With global market condition that is still red, the high projection in IHSG will not last long. He estimated that IHSG would back to its reasonable level after legislative election, probably in range of 4,800.
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