JAKARTA: The Feds decision to stop quantitative easing policy in June is believed to give negative psychological effects to Asian stock markets, mainly commodity market.Youghes Khatri, an economist at Nomura Securities Asia Pacific, said that the removal of quantitative easing at end of this month would trigger concerns that global market liquidity, including Asia, will shrink and flow back to United States.Its effect to the stock market is psychological. The biggest perception emerging is lower liquidity to the market, he said in his recent expose titled Indonesia: building momentum.The change of US monetary measure, as he added, indicated that there was change of investment flow of the country in global market. Commodity market, which has been the investment target of funds from the US, gets the highest potential to drop.However, he thought that fundamental condition of commodity market would remain strong, especially global market of oil, food and energy. In context of supply and demand, there is still power, Youghes said.At the same event, Head of Equity Research PT Nomura Securities Willianto Ie said that Indonesian stock market this year will potentially frwo significantly, considering strong momentum of economic growth.Stock market will be more interesting for companies to generate fund, because cost of fund is lower. Risk profile of Indonesia is also decreasing in line with rupiah lower volatility.He thought that Indonesia stock market has not been overbought because price to earning ratio (PE) is still in line with that of Asia Pacific market. He compared current situation with Indonesias highest PE reached in 1995.At that time, Indonesia held the investment grade so Indonesia stock index was traded premium equaled to Asian markets.Now we return to the position before 2008 crisis, and it still equals to Asian markets PE, Willianto added.Jakarta Composite Index yesterday fell 1.03% to close at 3,748.76, continuing its 3-day declining streak. In the last four days, JCI dropped 2.48%. (t04/msw)

---

Artikel Terkait

Berita Lainnya

Berita Terbaru