Shares of the metal and mineral mining sector profit when Biden wins the US presidential election

ILLUSTRATION. Nickel, silver and copper mining companies can benefit from soaring demand.

Reporter: Ika Puspitasari | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. The presidential election of the United States which will be held on Tuesday (3/11) tomorrow will affect the movement of shares on the Indonesia Stock Exchange.

Suria Dharma, Head of Research at Samuel Sekuritas Indonesia, said commodity stocks such as nickel and gold are one of the sectors that will receive positive sentiment if Joe Biden succeeds in shifting Donald Trump’s position. This is in line with Biden’s plan to spend US $ 2 trillion for clean energy and this has the potential to increase the electric vehicle or solar panel industry in the future.

Hence, nickel, silver and copper mining companies can benefit from higher production in line with soaring demand. “If Biden wins, the possibility of stimulus is greater, pro green energy, but taxes are higher. It is estimated that geopolitical tension will be more with Russia, “said Suria, Monday (2/11).

This more stimulus from Democrats is expected to lift the price of gold. The Head of Research of FAC Sekuritas Indonesia Wisnu Prambudi Wibowo also shared the same opinion.

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Wisnu said the mining sector would be interesting if Biden won in the US presidential election this time. “But mining “If you prefer nickel as a raw material for electric vehicle batteries, silver also has the opportunity to increase as a component of solar panels,” he told Kontan.co.id, Monday (2/11).

Wisnu explained, the shares of issuers that produce nickel could begin to be scrutinized, including PT Vale Indonesia Tbk (INCO), PT Aneka Tambang Tbk (ANTM), and PT Central Omega Resources Tbk (DKFT).

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Just look, in today’s trading, INCO’s shares shot up to 5.43% to the price of Rp 4,270 per share, then ANTM followed, which jumped 4.27% to the price of 1,100 per share, even DKFT rose 34.55% to the price of Rp 148 per share.

In addition, continued Wisnu, the health and banking sectors are also interesting if Biden wins. According to him, when investors started to enter emerging market, banking stocks will be hunted down, especially large banks such as Bank Central Asia Tbk (BBCA) and Bank Rakyat Indonesia (Persero) Tbk (BBRI).

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