Equity Market Commentary : August 2021

  • icon-jam08 September 2021
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Equity Market Commentary : August 2021

Clearer Direction (Global)

Investors finally got a strong signal from the Fed that tapering on asset purchase will soon happen later in this year. The Fed in the latest meeting has acknowledged one of their two targets has been achieved, namely average inflation target at 2%. The second goal of the Fed is for maximum employment which is still in progress. However, the Fed also warned against acting too hastily in response to elevated inflation, noting that such a move could be particularly harmful given the world’s largest economy was still fighting the effects of the pandemic. We see a clearer direction given by the Fed at the end of August has driven global stocks to rally after correction in the mid of the month.

Meanwhile, Chinese president Xi Jinping pushes further nation agenda on ‘common prosperity’ which aims to more widely distribute wealth after a series of regulatory interventions strengthened the government’s control over the private sector. Recognising an uncommon situation, Chinese financial authorities have gone out of their ways to reassure foreign investors and markets have responded with an impressive rally.

We see all described above as a chance for investors to calculate policy risk in their portfolios where often undermined. In RD MGSED we have diversified the risks by maintaining our unconstrained portfolio globally. Hence, our fund can grow continuously amidst pandemic effects and economic uncertainty.


Domestic Improvement (Domestic)

Indonesia has made a lot progress in containing Covid – 19 cases in August. Major indicators have shown a better situation in August, such as BOR reached 26% (vs 60% in July), vaccination 1st dose 29.6% (vs 22.8%) and 2nd dose 16.7% (vs 9.9%), infectious rate 12.1% (vs 25.2%), new cases 125,102 cases/week (vs 273,891 cases/week) and only 6 provinces left at PPKM level 4 (vs 13 provinces). We see the government has slowly loosened the activity restriction with more people received the vaccination. We don’t see vaccine supply become an issue anymore because the government has received more supplies from other countries.

Additionally, the Fed has sent a clearer signal on their tapering plan later on this year. This is taken after the Fed acknowledged in their latest meeting at the end of August that one of their two targets has been achieved, namely the average inflation target of 2%. The other target is employment still in progress. The equity markets responded positively as investors can have a better direction to position their portfolios.

JCI was relatively flat along the month of August, while the LQ45 index which majority consists of blue-chip stocks increased following a better pandemic situation and higher expectations on re-opening the economy after the strict activity restriction in July – August.


Product Recommendation

MGSED Reksa Dana MGSED berinvestasi pada Efek Ekuitas Syariah Luar Negeri di dalam Daftar Efek Syariah.
Dengan segmen Jangka Panjang, dan dikategorikan berisiko tinggi.
Investor memiliki risiko atas portofolio saham tersebut.
ASEAN5 Reksa Dana ASEAN5 berinvestasi pada Efek Ekuitas Domestik dan Luar Negeri dengan segmen Jangka Panjang,
dan dikategorikan berisiko tinggi. Investor memiliki risiko atas portofolio saham tersebut.



Pendapat yang diungkapkan dalam artikel adalah untuk tujuan informasi umum saja dan tidak dimaksudkan untuk memberikan saran atau rekomendasi khusus untuk individu atau produk keamanan atau investasi tertentu. Ini hanya dimaksudkan untuk memberikan edukasi tentang industri keuangan. Pandangan yang tercermin dalam konten dapat berubah sewaktu-waktu tanpa pemberitahuan. Seluruh data kinerja dan return investasi yang tertera di artikel ini tidak dapat digunakan sebagai dasar jaminan perhitungan untuk membeli atau menjual suatu efek. Data tersebut merupakan catatan kinerja berdasarkan data historis dan bukan merupakan jaminan atas kinerja suatu efek di masa mendatang. Investasi melalui reksa dana mengandung risiko. Investor wajib membaca dan memahami prospektus sebelum memutuskan untuk berinvestasi melalui reksa dana.

Written by

Willy Gunawan

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