Is the January effect still present for JCI?

Jakarta, CNBC Indonesia – If in December market players recognize the term Gathering of Santa Claus which shows that stock prices tend to rise during the last week of December, then in January market participants recognize the term January effect.

January effect This is a phenomenon where US stock markets tend to strengthen in January. This phenomenon is obvious. Over the last two years, the largest US stock index, the S & P 500, has consistently posted monthly positive returns in January. In January 2017, the S & P 500 Index also rose 1.79% mom, and in January 2018, 5.62% mom.

The occurrence of the phenomenon is due to several reasons January effectone of them is the use of end-of-year bonuses by the American community to invest in the stock market.

Other than that, January effect also caused by psychological factors: some investors think that January is the best month to start an investment program. There are also people who realize the New Year's resolution to invest in such a way that the effort of buying in the stock market increases and leads to higher prices.

Phenomenon January effect in the United States then expanded to the Indonesian stock market. You could even say that January is a mild month for stock investors in Indonesia.

Over the past 5 years (2014-2018), the Composite Equity Price Index (CSPI) has generated negative returns on a monthly basis in January, and only 0.05% (2017). ).

In January 2019, the S & P 500 index soared to 6.54%, while JCI rose 4.09% (until the close of trading last Friday, the 18 / 01/2019). Reinforce both are quite high.

So, are there still crumbs January effect for JCI? (ank / bag)