ILLUSTRATION. Until the third quarter of 2020, several indicators were seen to be improved for the market.
Reporter: Akhmad Suryahadi | Editor: Wahyu T. Rahmawati
KONTAN.CO.ID – JAKARTA. Panin Sekuritas raises the target of the Composite Stock Price Index (IHSG) until the end of 2020. Head of Research Panin Sekuritas Nico Laurens said that his party is targeting the JCI to be at the level of 5,644 by the end of this year, up from the previous projection of 5,364 levels.
Nico said, there were a number of sentiments that could be a positive catalyst for the JCI. Among them is the effect of Joe Biden’s victory in the presidential election (pilpres) of the United States (US), especially for Indonesia. Biden’s victory is considered to reduce global trade uncertainty and reduce pressure for countries that have trade surpluses with the US, such as China and Indonesia.
Joe Biden will also implement a larger stimulus policy, which will put pressure on the US dollar, and will reduce the depreciation pressure on developing countries’ currencies, particularly the rupiah. Sentiment also comes from vaccine developments. Pfizer and BioNTech state that the vaccines developed are more than 90% effective at providing immunity.
“We see positive sentiment from the region as well as the development of domestic data releases in the short-medium term, particularly from the victory of Joe Biden in the US presidential election, strengthening commodity prices, stable rupiah exchange rate, accelerating PEN funds, and improving JCI profit performance,” explained Nico. , Sunday (22/11).
Until the third quarter of 2020, several indicators were seen to be improved for the market, one of which was GDP growth in the third quarter of 2020 which was recorded to have improved to -3.49% from the previous – 5.32%. In addition, car sales also increased by 362.2% on a quarterly basis, motorcycle sales were up 190.8% on a quarterly basis, and cement sales were up 42.1% on a quarterly basis.
The realization of the national economic recovery fund (PEN) has also reached IDR 376.2 trillion or 54.1% of the target (first semester of 2020 amounted to 17.9% of the target). The sectors recommended by Panin Sekuritas are banking, media, and stocks related to commodities such as metal mining and plantations (plantation).
Panin Sekuritas’ preferred shares include PT Bank Central Asia Tbk (BBCA) PT Bank Mandiri Tbk (BMRI), PT Indofood CBP Sukses Makmur Tbk (ICBP), PT Bank Negara Indonesia Tbk (BBNI), PT Kalbe Farma Tbk (KLBF), PT Semen Indonesia Tbk (SMGR), PT Aneka Tambang Tbk (ANTM), PT Astra Agro Lestari Tbk (AALI), and PT Media Nusantara Citra Tbk (MNCN).
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Reporter: Akhmad Suryahadi
Editor: Wahyu T. Rahmawati