Analysts Say Windows Dressing is Likely to Occur by Year-End

This year-end’s potential window dressing, coupled with sentiments ahead of the 2024 elections, may trigger the market to strengthen. In line with this, several securities released recommendations for several choice stocks.

Tim Redaksi
21 Nov 2023 - 14.08
Analysts Say Windows Dressing is Likely to Occur by Year-End

Illustration - An employee at a Jakarta securities firm engaged in activities close to the stock movement screen, Monday (10/16/2023)./Bisnis-Arief Hermawan.

Bisnis, JAKARTA — The Indonesian capital market will soon enter the last month of 2023. Several year-end market phenomena are likely to occur, including window dressing, though its impact may be minimal.

Window dressing is a practice carried out by companies or investment managers to enhance the performance of their financial reports before the end of the reporting period. This practice involves adjusting investment portfolios or financial records to appear better than the actual conditions. For instance, a company may sell less profitable assets and increase investments in well-performing assets near the reporting period's end.

In the stock market, window dressing can create distortions in evaluating stock performance or investment portfolios. When companies or investment managers adjust their portfolios, it can create the impression that they have more profitable investments than they do. The impact can make stocks appear more attractive to potential investors, influencing stock prices.

Maximilianus Nico Demus, associate director of research and investment at Pilarmas Investindo Sekuritas, said window dressing will likely occur by year-end. He said that Indonesia's economic fundamentals remain strong despite global uncertainties, such as ongoing inflation, potential rate hikes, rising oil prices driving inflation, and China's slowing economic prospects.

Editor: Yusuf Waluyo Jati

Lanjutkan Membaca

Analysts Say Windows Dressing is Likely to Occur by Year-End

Dengan paket langganan dibawah ini :

Tidak memerlukan komitmen. Batalkan kapan saja.

Penawaran terbatas. Ini adalah penawaran untuk Langganan Akses Digital Dasar. Metode pembayaran Anda secara otomatis akan ditagih di muka setiap empat minggu. Anda akan dikenai tarif penawaran perkenalan setiap empat minggu untuk periode perkenalan selama satu tahun, dan setelah itu akan dikenakan tarif standar setiap empat minggu hingga Anda membatalkan. Semua langganan diperpanjang secara otomatis. Anda bisa membatalkannya kapan saja. Pembatalan mulai berlaku pada awal siklus penagihan Anda berikutnya. Langganan Akses Digital Dasar tidak termasuk edisi. Pembatasan dan pajak lain mungkin berlaku. Penawaran dan harga dapat berubah tanpa pemberitahuan.

Copyright © Bisnis Indonesia Butuh Bantuan ?FAQ