Jakarta, CNBC Indonesia – PT JPMorgan Securities Indonesia predicts the Jakarta Composite Index (JCI) will reach the level of 6,800 by the end of this year.
This optimism is due to positive catalysts from the domestic economy, which is currently experiencing improvement, especially with this year’s surplus balance sheet position.
JPMorgan Indonesia Executive Director Henry Wibowo said another sentiment was the return of investors to stocks with large market capitalization (big caps) such as banking and commodity stocks.
“We are optimistic that the JCI target by the end of this year will reach 6,800. In fact, we have set the target at the end of last year, November, and we are optimistic that it can be achieved by the end of this year. Maybe sooner than expected,” said Henry in the Investtime program, quoted Friday (22/22/2020). 10/2021).
He explained that big cap stocks contributed up to 40% of the index movement, especially from the cyclical sector and the old economy. Stocks from this sector are being hunted by investors after the boom from other sectors.
“So the first commodity is coal, after that banking investors support big caps because most of the big caps are from the banking sector. So the JCI this month rose 7% in October, it’s not even the end of October, so we are optimistic that the target can be 6,800 by the end of the year,” he explained.
For this reason, he said that currently, banking stocks still have the opportunity to strengthen, considering that some of them are still included in the stocks that weigh in on the index, such as shares of PT Bank Rakyat Indonesia Tbk (BBRI) and PT Bank Negara Indonesia Tbk (BBNI).
He assessed that these two stocks still have a chance to strengthen because they are not in an all-time high price position.
Unlike the shares of PT Bank Central Asia Tbk (BBCA) which touched the highest price of all time after the company conducted a stock split some time ago.
For information, JCI in today’s trading, Friday (22/10), closed at 6,643.73 points with a slight increase of 0.16% throughout the day.
In the last month there has been an increase in the index by 8.16%. With the lowest position in the last month at 6,086.26 and the highest at 6,687.13 points.
BBNI shares closed up 1.71% at Rp 7,450/share with an 8.36% weekly increase, while BBRI shares closed up 0.92% at Rp 4,400/share with a 3.5% weekly increase.
BBCA shares also closed up 1.69% at Rp 7,525/share with a week correction of 2.90% and a market capitalization of Rp 927 trillion.
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