Corona virus outbreaks that hit the world in early 2020, making the stock market really fell. Corona virus first occurred in Wuhan, China. However, the spread of the Corona virus continues to spread overseas and Indonesia is also affected.
Actually, in the past we were also thrown up a number of times with the Ebola virus, the 2002 Sars virus and the Mers virus. But I must admit, the Corona virus this time was 'different', and really made people and the world panic, so that its influence on the stock market was huge.
Yup, because we know that the spread of the Corona virus is very easy and fast through contact with other people infected with the virus. This is what makes people more aware of the plague.
IHSG decrease during Corona Virus outbreak
Well, I often get questions like this: "Mr. Heze, why does the Corona virus make the CSPI fall? What is the impact of the Corona virus on the CSPI? Wasn't there also an outbreak of other viruses, but the impact on the CSPI was not too great?"
First, the Corona virus outbreak can shake the business world (the world economy), so that if the economies of countries fall alias slow down, stock investors will think again to invest in stocks. Investors will surely wait for the economic situation to improve, and then dare to invest.
Secondly, the Corona virus outbreak caused countries to stop / reduce imports of goods from China. And Indonesia has implemented this. According to data from the Indonesian Directorate General of Customs and Excise, Indonesia's imports into China have decreased by around 51% one month since the Corona virus outbreak.
In fact, not a few companies in Indonesia whose raw materials come from China. If imports from China are drastically reduced, this will greatly affect the company's operations and turnover. .
Third, business activities are hampered. There are many examples that we can see everyday. You can pay attention to airlines, service companies (providing airplane tickets) which have started to experience a turnover, because for the time being many people are reducing mobility.
Around you, you might find many companies whose turnover is down, layoffs due to the impact of the Corona virus make the company unable to operate optimally
In addition, business activities between countries will also be hampered. Because with this Corona virus outbreak, community mobility (to run business between countries) will also be hindered.
The impact of the Corona virus is also expected to erode the economic growth of China, and of course this will also affect business relations with other countries.
So in fact the world of business, the world of economies between countries is interconnected with one another
That is why if the economy of a country (especially big countries like China and the United States) is shaking, then this will also affect the economies of other countries, including Indonesia. And in the end it will have an impact on the stock market.
Yup, so Indonesia and other countries have mutual relations (mutual benefit) in the fields of economic cooperation, investment and trade. We do a lot of importing activities from China, for example steel imports, aluminum imports, machinery goods and others.
And all this is back again ... If the country's economy is disrupted, then Indonesia will be affected. As a result, many companies cannot book net income and turnover as expected, so stock investors will think about buying shares in Indonesia.
So through this post, we all understand the impact of the Corona virus on the stock market. The impact is huge and not kidding. We have seen how the Jakarta Composite Index dropped sharply due to the Corona Virus outbreak.
But of course, we will definitely go through the test. There was a time when IHSG fell, there was a time when IHSG and the economy prospered again.
If we face negative sentiments and news that greatly affect the stock market, then it's good you have to reduce the trading portion and buy shares.
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