Depressed by negative sentiment, this is the recommendation of analysts for cigarette issuers

ILLUSTRATION. Analyst recommendations for the movement of cigarette issuers’ shares: GGRM, HMSP, WIIM, ITIC, RMBA.

Reporter: Ika Puspitasari | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. Cigarette issuers came under pressure on trading Tuesday (20/10). Shares of PT Gudang Garam Tbk (GGRM) fell 5.86% to the price of IDR 40,550. Then the shares of PT HM Sampoerna Tbk (HMSP) corrected 5.67% to the price of Rp 1,415.

Then, the shares of PT Wismilak Inti Makmur Tbk (WIIM) cut 5.21% to the price of Rp 364, and PT Indonesian Tobacco Tbk (ITIC) shrank 2.10% to a price of Rp 700 per share.

Meanwhile, PT Bentoel Internasional Investama Tbk (RMBA) closed stagnant at Rp 370 per share. However, earlier at 14.30, RMBA’s shares had weakened 2.70% to a price of Rp 360 per share.

Apart from the issue of cigarette excise, Muhammad Nafan Aji Gusta Utama assessed that cigarette issuers’ stocks were weakening in line with the market’s attitude. wait and see against the US stimulus program that has not been disbursed due to the political dynamics between the executive and legislature.

Also Read: JCI slumped 0.52% to 5,099 under pressure from decline in cigarette issuers, Tuesday (20/10)

Furthermore, the market is also waiting for the government to confirm the recession of the Indonesian economy.

Furthermore, Nafan predicts that the performance of cigarette issuers will begin to improve in the third quarter of 2020, performance improvements are also predicted to continue in the final quarter of this year.

One of the strategies that cigarette companies can implement is product innovation. According to Nafan, this can increase sales and restore performance.

For now, Nafan continued, market players can still accumulate GGRM shares in the area of ​​Rp. 40,000 – Rp. 40,100 with a target price of Rp. 41,600 and buy HMSP in the area of ​​Rp. 1,400 – Rp. 1,420 with a target price of Rp. 1,455 and the next target of Rp. 1,820.

“RMBA still bearish consolidation, can hold with a target price of IDR 320. WIIM has started to leave the phase uptrend and still in condition sideways“Hold on, with a target price of IDR 344,” he said, Tuesday (20/10).