Benefited from the extension of the PSBB, consider the following stock recommendations

Reporter: Ika Puspitasari | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. The Provincial Government of DKI Jakarta has decided to extend the large-scale social limitation (PSBB) in the transition period for two weeks or 14 days. The PSBB transitional period has been extended from 17 July to 30 July 2020.

Jakarta Deputy Governor Ahmad Riza Patria said, DKI Jakarta Governor Anies Baswedan had signed the governor’s decision regarding the PSBB extension for the transition period. The PSBB transition was extended because Jakarta was considered not safe from the spread of Covid-19.

CSA Research Institute Senior Analyst, Reza Priyambada sees, market players are getting used to the decisions of these policies, especially when viewed from the real conditions on the ground today. Thus, the decision will not have much effect on the market. “Especially if you look at the previous PSBB, where even though there is a PSBB, it’s not like there is a PSBB, public activity is still running,” Reza told Kontan.co.id, Thursday (7/16).

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Reza explained, the extension of the PSBB during the transition period would have a positive impact on the same sectors as before, namely around the consumer goods sector, telecommunications, towers and the media. Therefore, he advised market players to pay close attention to such stocks TLKM, ISAT, EXCL, TBIG, ICBP, and GGRM.

On the other hand, sectors such as transportation, property and tourism have not been able to recover with the extension of the PSBB during this transition period. Reza recommends investors to wait and see first shares of this sector while seeing developments in the second quarter and third quarter 2020.

Previously, Pilarmas Investindo Sekuritas Director of Research and Investment Association Maximilian Nico Demus predicted that the government would continue the transition period PSBB and not make a decision to tighten the PSBB. He said, if the implementation of the PSBB was tightened again it would have a negative impact on a number of business sectors, including the Indonesian capital market.

“If we see, the purchasing power has experienced quite a weakening, then the business activity survey is also battered, so it cannot be closed down,” he said, Thursday (7/16). Nico added, if the PSBB was eliminated then all sectors would certainly be stretched back from the property, automotive or retail sectors.

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In Thursday’s trade (7/16), the consumer goods sector recorded the largest increase of 2.52%. Furthermore, the manufacturing sector rose 1.63%, the multifarious industry sector rose 1.29%, the infrastructure sector gained 0.49%, the basic industry sector climbed 0.28%.

Meanwhile, the construction and property sectors fell 0.81%, the plantation sector fell 0.63%, the mining sector fell 0.43%, the trade and services sector eroded 0.24%. and the financial sector weakened 0.15%.