Big cap stocks fill the top ten laggards of JCI, following analyst recommendations

Reporter: Nur Qolbi | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. Large market cap stocks are still perched in the top ten laggards of the Composite Stock Price Index (IHSG) throughout 2020.

Call it PT Telekomunikasi Indonesia Tbk (TLKM), PT Bank Mandiri Tbk (BMRI), PT Chandra Asri Petrochemical Tbk (TPIA), PT Barito Pacific Tbk (BRPT), PT Bank Negara Indonesia Tbk (BBNI), PT HM Sampoerna Tbk (HMSP), PT Indocement Tunggal Perkasa Tbk (INTP), and PT Perusahaan Gas Negara Tbk (PGAS).

In fact, the JCI itself has shown improved performance in recent months. During the past month, JCI rose 4.39% and increased 14.91% in the past three months.
On Wednesday (19/8), the IHSG closed down 0.42% to the level of 5,272.81.

Also Read: Good news! Environmentally friendly motor vehicle loans will be down payment free

Pilarmas Investindo Sekuritas analyst Okie Ardiastama is of the opinion that these stocks are perched as JCI laggards along with investors taking profit-taking. Given, the prices of these shares have risen quite high.

TLKM, for example, since the JCI reached its lowest position at 3,911 on March 24, 2020, TLKM’s shares have reached a price of Rp 3,540 per share. Likewise with BMRI which once reached the level of Rp 6,275 per share.

On the other hand, TLKM once slumped to its lowest position at Rp 2,550 and BMRI Rp 3,660 per share. Currently, the price of TLKM per share is IDR 3,000 and BMRI IDR 6,100.

Meanwhile, Main Services Analyst at Capital Sekuritas Chris Apriliony assessed that some of these stocks were lagging the JCI because fundamentally they were not attractive and some were not liquid. Even so, he saw an opportunity to accumulate some stocks that still had good prospects.

“In general, companies such as TLKM, BBNI, BMRI, and PGAS are still quite attractive because their performance is still quite good,” said Chris when contacted by Kontan.co.id, Wednesday (19/8). What’s more, the valuation of the four shares is considered cheap.

Also Read: To support the multi-finance business, Sinar Mas Multiartha issued bonds of Rp 250 billion

Compared to the price one year ago, TLKM’s share price is currently 29.91% lower and BMRI -21.54%. Even PGAS corrected 34.75% and BBNI -38.79%. Chris recommended to buy TLKM’s shares with a target price of IDR 3,400 per share, BMRI IDR 7,200, PGAS IDR 1,800, and BBNI IDR 6,000 per share.

In a similar vein, Okie also considered that the shares of BMRI, BBNI and PGAS were attractive to be collected. According to Okie, the realization of the National Economic Recovery (PEN) program can support the growth of BMRI and BBNI.