KONTAN.CO.ID - JAKARTA. Various positive sentiments can drive the growth of the Jakarta Composite Index (JCI) in the second half of 2019.

The first sentiment, the official victory of Joko Widodo and Ma'ruf Amin as the next president and vice president reduced political risk. Now market participants are witnessing the formation of a new cabinet.

The market will assess whether the new cabinet can polish economic conditions for the better or not. "Market participants only need to look at government policies and cabinet structures," said Head of Research at Infovesta Utama, Wawan Hendrayana.

Another sentiment, the trade war will still affect stock market movements. Last weekend US and Chinese officials agreed to return to negotiations over the trade war.

This news can be a positive sentiment for the stock market. US President Donald Trump insists that he will no longer raise import tariffs for Chinese products. China also agreed to buy US agricultural products.

However, Artha Sekuritas Research Vice President Frederik Rasali said the negative sentiment of trade wars had put pressure on the stock market. The threat of a global economic slowdown also affects the index. The World Bank cut world economic growth to 2.6% from 2.9%.

The other sentiment is the interest rate policy. Analysts believe that interest rates will decline at least this year and will be a stimulus to encourage economic growth.

Fourth, the Standard & Poors (S & P) decision to raise Indonesia's debt rating to BBB. S & P also has a stable outlook.

Now domestic political affairs are complete. Henry and Frederik are optimistic that the JCI will strengthen. Wawan predicts the JCI can reach 6,800. As for the Frederick projection, the JCI can rise to 6,700.

They suggested that investors see large capitalized shares, financial and consumer goods.

Editor: Hasbi Maulana