Emergency micro PPKM will be implemented, beware of these stocks

Reporter: Kenia Intan | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. The high increase in Covid-19 cases in Indonesia has prompted the government to implement a stricter Micro Community Activity Restriction (PPKM) on 2-20 July 2021.

Pilarmas Investindo Sekuritas analyst Okie Setya Ardiastama observed that a tighter micro PPKM is projected to slow down the performance of a number of issuers. Therefore, the movement of stock prices will also be depressed. Even so, this step is indeed needed to improve conditions in the midst of the Covid-19 pandemic so that the confidence of business actors and market players returns to increase.

In July 2021, Okie projects the Composite Stock Price Index (IHSG) will still strengthen although more limited. JCI is projected to move in the range of 5,834 to 6,170.

“The improvement in the performance of issuers in the second quarter, as well as the progress of recovery from consumption is considered to be trigger ,” said Okie to Kontan.co.id, Wednesday (30/6).

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He added that the movement of stocks in the retail sector has the potential to be depressed and become a ballast. The retail sector is affected by the shorter mall operating times.

Just so you know, the operating hours of malls and restaurants that were originally allowed to operate until 20.00 will be limited to 17.00 only. In addition, the public is expected to tend to hold back their spending, thereby triggering a slowdown in the performance of retail issuers in the third quarter.

However, overall, Okie is still optimistic that the performance of retail issuers will still be better than last year. This is in line with the development of vaccination which is considered to help create herd immunity.

Also Read: Market traders ask the market not to be closed during emergency PPKM