Trading trends in Indonesia during the pandemic made many people, especially the younger generation, aware of investing by looking at existing investment opportunities, one of which is stock trading and investment. Of course, there are various reasons for these stock transactions to increase even though they are experiencing a pandemic. The rise of trading trends in Indonesia certainly makes trading companies have great opportunities that can benefit the company. Then what are the reasons for the increase in trading business in Indonesia? Here are some of the analysis.
1. Take advantage of the moment
Interest rates during the pandemic have decreased so that they are lower. This is then used by millennials and young people by starting to set aside their money to carry out trading and investment. Currently, investors in the stock exchange are dominated by local investors, which even reached more than 60%. This indicates that many domestic investors have entered the market to take advantage of the low share prices of several companies.
This is also inseparable from the work from home (WFH) policy that was launched since the pandemic started. In the midst of layoffs by a number of companies, not a few employees felt more income so they started thinking about using the remaining money to start investing.
2. The number of sectors is considered anti-crisis
A pandemic often causes many companies to experience a decline in transactions and even experience a crisis. Call it various companies engaged in tourism, culinary, and even a number of other companies. Nevertheless, there are still a number of companies that have strong fundamentals so that their share prices are still competitive.
Call it several business sectors such as banking, mining, the paper industry, to the health sector, whose shares have strengthened to hundreds of percent during the pandemic. All of this certainly gives even novice traders an opportunity to try investing their money in the shares of these promising issuers.
Strengthening the shares of various companies is not only influenced by good fundamentals. However, other factors such as rising commodity prices, mergers and acquisitions, to the expansion and expectations of market players have also more or less influenced the increase in share value and stock trading transactions.
3. More flexible transactions
The pandemic era has seen many people start working from home or running businesses online. This has been beneficial as activities such as trading activities can be conducted anywhere and anytime, and investors can monitor stock movements, prices, and other news updates. The various issuer policies that occurred during the pandemic also allowed for the flexibility of the trading activity to be done optimally.
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4. Easier access to investment
The investment market has been enhanced by the emergence of beginner investors and traders, allowing for easy access to information and trading in stocks and investments. This has been supported by innovations carried out by various trading companies, but it has also had an impact on ease of access. Additionally, government policies have encouraged the growth of vaccine activities, leading to an increase in share transactions.
5. The influence of social media
Social media is becoming increasingly popular by utilizing paid advertising and online trading to maximize interactions with traders.
Social media such as Instagram and Tiktok have become increasingly popular, leading to an increase in trading activity, particularly with the target market of millennials who are close to social media. Investment and trading advertisements are popping up to further increase trading activity.
Those are some of the reasons why trading activities in stocks are increasing even though we are facing a pandemic.
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