Commodity prices are rising, this is a recommendation for commodity-based stocks

ILLUSTRATION. The oil palm plantation of PT Astra Agro Lestari Tbk (AALI).

Reporter: Ika Puspitasari | Editor: Tendi Mahadi

KONTAN.CO.ID – JAKARTA. The Central Statistics Agency (BPS) noted that the trade balance in April 2021 was a surplus of US $ 2.19 billion, higher than the surplus in March 2021 of US $ 1.57 billion.

In Kontan’s notes, Head of BPS Suhariyanto revealed that the performance of the trade balance surplus in April 2021 was an encouraging performance. The reason is, this is followed by an increase in exports and imports on an annual basis.

The export value in April 2021 alone was recorded at US $ 18.48 billion, an increase of 0.69% from March 2021 which amounted to US $ 18.35 billion. Even when compared to an annual basis, the export value in April 2021 shot up 51.94% from April 2020 which amounted to US $ 12.16 billion and even higher than April 2019 which amounted to US $ 13.07 billion.

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The increase in exports in April 2021 was driven by the increase in prices for several mainstay commodities from Indonesia and increased demand from Indonesia’s trading partner countries.

Pilarmas Invesntindo Sekuritas analyst Okie Ardiastama said the issuer crude palm oil (CPO) and coal issuers have benefited from the increase in the price of each of these commodities. “CPO and coal issuers are currently quite directly affected by the price increase,” he said, Sunday (23/5).

Okie assessed that the increase in commodity prices could raise the performance of commodity issuers this year. Apart from these listed companies, he also assessed that the increase in commodity prices also has a positive impact on shipping issuers.

indocement

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According to him, shipping issuers, which are generally partners of exporters, have experienced an increase in the volume of transportation and can increase demand for ship charter services.

From these commodity sector stocks, Okie championed shares including PT PP London Sumatra Indonesia (LSIP), PT Salim Ivomas Pratama Tbk (SIMP), and PT Astra Agro Lestari Tbk (AALI). For shares of coal issuers there is PT Adaro Energy Tbk (ADRO) and PT Indo Tambangraya Megah Tbk (ITMG).