Profit potential is higher, see analyst recommendations for second liner stocks

ILLUSTRATION. Employees observe the screen of stock trading movements on the Indonesia Stock Exchange, Jakarta, Thursday (10/9/2020). BETWEEN PHOTOS / Reno Esnir / aww.

Reporter: Ika Puspitasari | Editor: Tendi Mahadi

KONTAN.CO.ID – JAKARTA. Composite Stock Price Index (IHSG) has shot 10.70% in the last month. At the close of trading on Thursday (3/12), the JCI strengthened by 0.15% to the level of 5,822.94. Not only issuers with large caps that have strengthened, but stocks with medium and small cap capital have also increased.

Kiwoom Sekuritas Indonesia analyst Sukarno Alatas assessed that second tier stocks are also an attractive option, because the potential returns are higher than stocks. blue chip. “But the price is very volatile, so be careful,” he advised, Thursday (3/12).

According to Sukarno, the current trend of market players is to chase down second-tier stocks because of this year to date still recording corrections and in terms of valuations are still relatively cheap.

Also Read: Property and construction stocks adorn the JCI top gainers, along with the drivers

“However, depending on the investor, retail investors are more interested in hunting down second and third tier stocks because they are considered to be able to produce above average returns. big caps, ke mid caps the number is small, “said Sukarno.

From the ranks of stocks second liner, Sukarno favored shares ADHI, PTPP, WSKT, LANGUAGE, BWPT, LSIP, ELSA, MEDC, BEST, ASRI, WAYS, WSBP, WTON, and STICK. He chose this stock because fundamentally it is still okay.

In addition, in terms of valuation, the majority of these shares are still present undervalue. Especially if you look at the good industrial prospects for making stocks second liner it is worthy of collection. “At the macro level, the sector is also quite good, especially the basis of BUMN as an option,” added Sukarno.

Also Read: JCI edged up 0.15% on Thursday trade (3/12), a month shot up 10.7%

Furthermore, he suggested that market players can choose stocks whose prices are in an upward trend. The reason is that stocks that are in an uptrend will usually only experience a slight correction and will come back up quite significantly later.