Indonesian markets have suffered its worst year since the global financial crisis of 2008 and 1998, as fears over the impact of the coronavirus and oil price continued to haunt investors. Today, IDX halts trading as shares drop more than 5%, creating -22.28 market loss year to date (YTD).
I became an eyewitness for the worst stock performance since my first trading in 2013. Most of my portfolio being burned since last year but this month is the worst. And it’s seems not an end in short time. It’s most likely going to get worse in the coming month.
Although most of my portfolio is for long-term investment and this is a good opportunity to buy shares at a low price, raising emergency funds is my current top priority for dealing with situations that might even be worse.
Actually, market crash not only hit the IDX as regional markets and major world market indices plunge even further as WHO declares pandemic for Coronavirus. Jakarta Composite Index (JCI) falls at -5.01% due to new trading suspension policy on brink of bear market introduce by the IDX.
The new policy will halt stock trading for 30 minutes if the Jakarta Composite Index, falls by more than 5 percent. If the index keeps falling to more than 10 percent after the first suspension is lifted, the trading will be halt for another 30 minutes.
Trading will be stopped for the whole session if the JCI continues to plunge more than 15 percent. The suspension can last for more than one day with approval or upon instruction from the Financial Services Authority (Otoritas Jasa Keuangan-OJK).
As trading halted on 15.33 (3.33 pm) and lasted for 30 minutes, trading technically ended as stock transactions close at 4 pm every day.
Most of my investment portfolio are in Indonesian stocks and market volatility made my investment value go down massively. However, if I could maintain an emergency fund and prepare a liquid asset as a backup plan, the decline of the shares value could be a golden opportunity to increase my investment portfolio.