Foreign investors are still recording net sell, see the stock recommendations from the following analysts

ILLUSTRATION. Employees observe the movement of the Composite Stock Price Index (IHSG) through mobile phone screens in Jakarta. BETWEEN PHOTOS / Rivan Awal Lingga / hp.

Reporter: Nur Qolbi | Editor: Herlina Kartika Dewi

KONTAN.CO.ID – JAKARTA. After slumping 2.96% in trading Monday (30/11), the Composite Stock Price Index (JCI) has now returned to the green zone. In the last two trading days, the JCI rose 2% and 1.56% so that it was perched at the level of 5,813.99 at the close of trading Wednesday (2/12).

Even so, foreign investors continued to sell. This can be seen from the foreign net sell which has continued to be recorded in these two trading days. On Tuesday (1/12), foreigners listed net sell Rp 684.06 billion in all markets and continued on Wednesday (2/12) amounting to Rp 155.34 billion.

Pilarmas Investindo Sekuritas analyst Okie Ardiastama said that the selling action which is still being carried out by foreign investors is only a technical factor. Given, the JCI has risen quite significantly in the past few weeks.

According to him, foreign investors will book another net buy on the stock market in line with improving domestic fundamental data.

Also Read: Breaking the 5,800 level, JCI still has the opportunity to strengthen on Thursday (3/12)

“The flow of foreign funds is only a matter of time,” said Okie when contacted by Kontan.co.id, Wednesday (2/12).

Okie is optimistic that Indonesia’s economic conditions can again attract foreign investors to enter the stock market. This is because Indonesia’s economic performance is better than other countries, especially in Southeast Asia.

Moreover, the continuing decline in financial market risk and Bank Indonesia’s commitment to maintaining financial market liquidity also provide room for the rupiah to appreciate towards the end of this year.

“For business people, exchange rate fluctuations are a special calculation. That way, the exchange rate stability, which is currently quite good, can also boost the performance of the real sector,” said Okie.

On the other hand, a sell-off by foreign investors can be an opportunity to collect stocks that are widely released. On Wednesday (2/12), the 10 stocks that recorded the largest foreign net sales were PT Unilever Indonesia Tbk (UNVR), PT XL Axiata Tbk (EXCL), PT Indocement Tunggal Perkasa Tbk (INTP), PT Bank Mandiri Tbk (BMRI) , PT Bank Negara Indonesia Tbk (BBNI), PT Adaro Energy Tbk (ADRO), PT Charoen Pokphand Indonesia Tbk (CPIN), PT Indofood CBP Sukses Makmur Tbk (ICBP), PT Indofood Sukses Makmur Tbk (INDF), and PT Ramayana Lestari Sentosa Tbk (RALS).

Okie advised investors to pay close attention to stocks belonging to the consumption industry sector. The reason is that, in the past, this sector is actually moving lagging amid the strengthening of the JCI.

“The decline that occurred in this sector can be used as a buying momentum because the room for strengthening is still quite open,” said Okie.

Given, the opportunities for improvement in this sector are predicted to increase in line with the improvement in people’s purchasing power next year.

Therefore, according to Okie, market players can consider buy on weakness UNVR, ICBP, INDF, and CPIN. He recommends investors buy on weakness UNVR in the area of ​​IDR 7,500-IDR 7,575 per share, ICBP IDR 9,800-IDR 10,050, and INDF IDR 6,800-IDR 7,175.

In addition, Okie assessed that the banking sector is still still there overweight so that this decline can be used as a buying momentum. He recommended BMRI buy on weakness in the range of Rp 6,325-Rp 6,650 per share and BBNI Rp 5,925-Rp 6,400.