Jakarta (ANTARA) - The fluctuations in the Composite Stock Price Index (IHSG) after the general election on April 17, 2019, have largely been controlled, Managing Director of the Indonesia Stock Exchange (IDX), Inarno Djajadi, has stated. "In principle, we see that overall, it is still under control. We also see buying by foreign investors," Djajadi said after meeting with national media leaders in Jakarta Monday.

The day after voting was held, the IHSG immediately opened at 87.3 points or 1.35 percent to 6,568.85. Strengthening the IHSG was the buying of shares by foreign investors, indicative of the amount of net foreign buy or "net foreign buy" of Rp1.43 trillion, of which Rp1.2 trillion was booked an hour before trading commenced.

Meanwhile, the IHSG closed down 1.42 percent to 6,414.74, Monday, although it had strengthened. Djajadi believed the movements in the stock index were still relatively reasonable.

"If there are small ripples it is normal because there are still differences between the pairs of 01 and 02. If small ripples persist until next month they are still under control," he said.

The IHSG movement in the past month has tended to increase, Djajadi added.

Investors who witnessed the election believed it would not have much of an effect on the domestic stock index. Moreover, once the official result of the election is declared, it would increase the IHSG.

"In fact, if we talk about the capital market, we see certainty. If there is certainty and we see 'long term', in the future it is good, it will reflect in the index. If everything is stable, the trend will be positive," Djajadi noted.

The capital inflow into the market was also restrained due to the election sentiment, but it should increase once the poll result is declared, he said. From the beginning of the year to the present, foreigners have already bought more than Rp15 trillion in the capital market.

"This is a bit restrained because there is a presidential election. Once the election is over, things will be cool, and God willing, it will be positive," Djajadi affirmed.

Translator: Eliswan Azly
Editor: Azizah Fitriyanti
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