The upward movement of IHSG shares based on the IDX

Nafa Lightyani

The upward movement of IHSG shares based on the IDX

Rancakmedia.com - JCI stock movements or the Composite Stock Price Index rose 1,05% to 6.009,9 on Wednesday (26.2.2021). The Central Statistics Agency (BPS) reported that inflation in May 2020 was 0,32%, higher than inflation in the previous month which was 0,13%.

With an inflation rate of 0,32% in May 2021, the inflation rate for the 2021 calendar year is 0,90% and the inflation rate for the current year (May 2021 to May 2020) is 1,68%.

Analysis of JCI Stock Movements in June

Based on data from the Indonesian Stock Exchange, JCI rose 1,69% to 5.947,46 at the end of Monday (31 May 2021).

Analysis of JCI Stock Movements in June

This strengthening is said to have been driven by optimism regarding dividend distribution from several issuers.

Artha Sekuritas analyst Dennies Christopher Jordan explained that technically the JCI has the potential for a short period uptrend which is supported by the MACD sign which shows an accumulation trend and widening stochastics after forming a golden ecross.

1. IHSG is Opened Before the Opening

JCI rose 0,93% or 55,02 points to 6.002,48. Of all the LQ45 index shares, 39 shares strengthened, 1 weakened, and 5 were static.

2. IHSG Continues to Sigh

at 10.24 WIB, JCI rose 1,01% or 60,06 points to 6.007,53. In the morning the index moved in the range 5.991,51 to 6.029,2.

3. Today's JCI Movement

JCI rose 1% At 11.30 WIB or the end of session I, the JCI rose 1,05% or 62,44 points to 6.009,9.
In the first session, the index was in the range 5.991,51 to 6.029,2.

JCI Stock Investment

IHSG is an essential reference for making investments. As the name suggests, the Composite Stock Price Index or IHSG is a stock market index used by the IDX as a sign of stock price movements.

This index is divided into all prices of ordinary shares and preferred shares listed on the IDX.

This means that index movements visualize whether the stock market is active or weak.

It is already known that shares are a capital market product. Shares are capital participation in the ownership of a Limited Liability Company (PT) or what is usually called an issuer.

Meanwhile, the share price is the value of a share in the capital market which is used as a parameter in a buying and selling business transaction.

JCI Stock Investment

You can watch share prices in real time on the official website of the Indonesian Impact Exchange (BEI).

Several hundred shares listed on the IDX are classified into several fields such as banking, real estate, retail, plantations, mining, and so on.

On the IDX website there is a list of company share prices taken, which are then summarized in a price index.

How IHSG Works

This is the working method that will determine the rise or fall of the IHSG. When the economy is better, investors invest in several shares of companies listed on the IDX.

Conversely, when the economy declines, investors will withdraw their money or sell shares, causing shares to fall.

If you watch the fluctuations in the IHSG, you can assume that it is an average value that represents the condition of the shares in capital market.

In other words, if you want to see the condition of the stock market in Indonesia, IHSG is a reliable reference.

When the JCI rises, it means that the IDX share price is on an upward trend. On the other hand, the weakening of the JCI caused IDX share prices to generally fall.

You need to remember that the IHSG is a summary of the price movements of all shares on the IDX. This means that the movement of these shares is different from what occurs in each share price.

Stocks can strengthen even though the JCI decreases and vice versa. Investing in a stock portfolio is not a way to generate profits.

You also have the opportunity to make money by channeling capital to small and medium enterprises (SMEs), whether independent companies or partners.

As with investing in shares, the key to starting a successful business is management finance the good one.

One of the appropriate financial management strategies of course starts with the help of technology.

Mekari Journaling software is the right choice for those of you who need help in managing financial reports more easily and practically.

How to Calculate IHSG

The way to calculate the IHSG is the same as calculating other stock market indices around the world, namely using a balanced average based on the number of shares in the stock market or a weighted average market value index.

How to Calculate IHSG

JCI formula: Index = (Market Value / Basic Value) x 100

  • The basic value in IHSG is the cumulative number of shares on the base day multiplied by the price on the base day.
  • Market value in IHGS is the cumulative number of shares listed multiplied by the market price.

How to Determine Market Value:

Market value formula: market value = p₁q₁ + p₂q₂ +… + piqi + pnqn

Information :

p = price that occurs at issuer i.
q = number of shares of issuer i used for index calculation.
n = number of issuers listed on the stock exchange.

Benefits of IHSG for Consideration by Investors and Traders

Even though the IHSG is just an average point, paying attention to the IHSG movement is really useful for knowing the economic situation in Indonesia.

There are several shares listed on the Indonesia Stock Exchange (BEI) and it is impossible for investors to see one share movement at one time every day.

Investors will know when to invest additional funds in a particular company, or even withdraw their funds by selling their shares.

What are the benefits of understanding the JCI for investors and traders? For investors and traders, the benefits of the IHSG are a consideration for investing and trading. JCI generally describes the movement of several stocks in LQ45.

It's true that the JCI doesn't always go down, and shares A or B go down too. However, the JCI is often an accurate benchmark regarding the movement of liquid shares.

Terms Existing in IHSG Shares

Below are important terms for IHSG shares, as follows:

Terms Existing in IHSG Shares

1. BEI

The Indonesian Stock Exchange (BEI) as a combination of the Jakarta Stock Exchange (BEJ) or the Surabaya Stock Exchange (BES).

With the aim of operational effectiveness and business transactions, the two exchanges were finally merged and started working on December 2 1 as the Indonesian Stock Exchange (BEI).

2. Liquid Shares

Some of the liquid shares in the IHSG are some of the shares that are easy to buy and sell. In other words, liquid shares are shares that are frequently traded.

Liquid stocks generally always have a line of consumers at whatever price they trade at.

3. Bubbles

In economic terms, a bubble is used to visualize a very rapid increase in stock prices (can occur over a period of time).

Sometimes prices are completely illogical and even exceed the company's primary needs. Bubbles can exist because the market believes certain circumstances.

4. Fluctuation

Like the KBBI's understanding of fluctuations, counting with shares, this term means the rise and fall of share prices.

JCI share price fluctuations are a result of the share buying and selling process. Surely this is a normal thing.

5. Portfolio

The IHGS stock portfolio is a group of fixed assets in the form of shares owned by individuals or companies.

Can a company own shares in another company? Of course I can. For example, one of Sandiaga Uno's companies, Saratoga Investama, has shares in other companies such as Adaro, Awal Bros Hospital, Deltomed, and others.

6. Liquidity

Stock liquidity in the IHSG is a measure of the number of stock business transactions in the capital market in a certain time period. The higher the frequency of stock trading, the higher the stock's liquidity.

Liquidity

7. Buybacks

Like the literal translation, buyback means repurchase. So, buying back shares at IHSG is buying back shares in companies that have been opened to the public.

Buybacks are carried out by companies for several reasons, such as to increase the company's capital.

Because if shares released to the public are owned back to the company, those shares do not need to receive dividends.

As a result, the company's net profit will definitely increase. An increase in income will of course attract investors, and the company's shares will increase.

8. Cut Los

Selling back shares at a loss is known as a cut loss. The intention is to avoid big losses. The contradiction of cut loss is hold.

9. Bullish

Bullish is often combined with the word bearish, which means a trend of rising and falling stock prices over a certain time, which is followed by investor confidence or pessimism in the stock market.

FAQ

The following are questions that we have collected based on the discussion in the article that we have presented above

1. What are the benefits of IHSG?

The second function of the IHSG is as an indicator of capital market movements. Because the IHSG is calculated from the real-time average share price on the stock market, the IHSG can be an indicator of the latest movements in the capital market. If the JCI trend rises, it is certain that share prices in the capital market will also rise.

2. What caused the JCI to fall?

One of the things that caused the JCI to decline was the outflow of foreign capital from the stock market and the weakening trend in the rupiah exchange rate which was the main trigger for the decline in the Composite Stock Price Index (IHSG) yesterday (7/4/2022).

3. What does it mean when the JCI rises?

The basic function of the JCI is as a marker of market movements. This index is a reliable benchmark for identifying current market conditions. If it rises, it means that the average share price on the stock exchange has also risen. On the other hand, if it falls, it means that the average share price on the stock market has fallen.

Conclusion

IHSG is an essential reference for making investments. As the name suggests, the Composite Stock Price Index or IHSG is a stock market index used by the IDX as a sign of stock price movements.

That is the information about the upward movement of the JCI shares based on the IDX. I hope the article above can be useful and helpful for all of you.

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Nafa Lightyani

I am a content writer for SEO, Technology, Finance, Travel, Cooking Recipes and others. I hope this can be useful for all my friends.