WNAM REPORT: Head of the Center for Macroeconomics and Finance at the Institute for Development of Economics and Finance (Indef), M Rizal Taufikurahman, predicted that the capital market would continue to move cautiously over the next few days following the announcement by Morgan Stanley Capital International (MSCI).
“The market’s projections for the near future, in the very short term, indicate that the market will remain cautious and volatile, particularly in the financial sector and large-cap stocks,” he told ANTARA in Jakarta on Saturday.
He said investors tend to wait for clarity on the direction of policy transition and leadership in the capital markets sector before taking further investment steps.
This is considering that a number of officials in the capital market sector, namely the President Director of the Indonesia Stock Exchange (IDX) Iman Rachman, Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar, and the Chief Executive of the Capital Market Supervisory Agency, Financial Derivatives, and Carbon Exchange of the OJK Inarno Djajadi resigned on Friday (30/1).
“If a credible replacement signal emerges quickly and accurately, pressure could ease and the JCI could return to following fundamental factors. However, without clarity, volatility risks persisting for longer,” said M. Rizal Taufikurahman.
