This is how JCI moves until next year, take a look at the following stock recommendations

Reporter: Kenia Intan | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. Composite Stock Price Index (IHSG) continues to move stronger. In fact, the movement had penetrated the 5,700 level. Analysts predict, this strengthening will continue until next year.

In research released Tuesday (24/11), JPMorgan revealed that the JCI could move up to the level of 6,800 in 2021. “Team emerging markets equity strategy we have upgraded Indonesia to overweight from neutral, “said the JPMorgan research team consisting of Henry Wibowo, Rajiv Batra, Pedro Martins Junior, Ajay Mirchandani, and Arnanto Januri, Tuesday (24/11).

This increase takes into account the positive sentiment that has colored the market, including expectations of the return of foreign funds after the United States (US) general election. In addition, the Omnibus Law is expected to be interesting foreign direct investment (FDI). This could make Indonesia the next supply chain hub in Asia for electric vehicles, batteries, cloud, or anything else.

The strengthening of the rupiah and lowering interest rates were other driving sentiments. Just so you know, in the last 1.5 years, Indonesia’s benchmark interest rate cut has reached 225 bps.

Also Read: Wall Street was hit by a rise in jobless claims and new US coronavirus cases

Meanwhile, in 2021 the gross domestic product (GDP) is estimated to grow by 4%. This is a recovery from GDP throughout 2020 which is predicted to be depressed by 2.2%.

Taking this into account, JP Morgan’s research team is stepping up sector recommendations financial and material Becomes overweight. On the other hand, lowering staples aka consumer goods and healthcare or health becomes neutral.

Meanwhile, investors can look at the sector value/cyclical like banking stocks BBCA, BBRI and stocks infra/industrials as JSMR, INTP, and Untrim.

JPMorgan also maintains overweight in the communications sector because looking at the profile risk-reward interesting, like TLKM. For issuers with small and medium market cap, JPMorgan tends to like the property and media sectors.

Also Read: The rupiah’s thin strengthening could continue tomorrow