The consumer confidence index rises, these stocks can be glimpsed

ILLUSTRATION. The screen displays the movement of the Jakarta Composite Index (JCI) at the Indonesia Stock Exchange, Jakarta. BETWEEN PHOTOS / Hafidz Mubarak A / nz

Reporter: Ika Puspitasari | Editor: Herlina Kartika Dewi

KONTAN.CO.ID – JAKARTA. Consumer confidence in February 2021 started to rise. The Bank Indonesia (BI) consumer survey shows that the Consumer Confidence Index (IKK) for February 2021 was 85.8, up from 84.9 in January 2021.

The improvement in consumer perceptions of current economic conditions is reflected in the Economic Condition Index (IKE) for February 2021 which amounted to 65.1 or improved from 63.0 in the previous month.

Pilarmas Investindo Sekuritas analyst Okie Ardiastama is of the opinion that consumers have seen the progress of recovery from the manufacturing side, which is currently quite stable in the expansion area.

Even though inflation is still low, consumer optimism for the recovery of the business sector from the distribution of the Covid-19 vaccine and the easing of activities raises the potential for recovery this year.

“So that it provides a positive catalyst for IKK. “Monetary and fiscal stimuli play a significant role in the recovery of purchasing power, especially in the automotive and property sectors,” said Okie when contacted by Kontan.co.id, Tuesday (9/3).

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He continued, the recovery in purchasing power for the automotive and property sectors is expected to be able to boost demand and provide multiplier effect in this sector as well as in the supporting sector.

According to Okie, sectors related to people’s purchasing power are like consumer goods, retail, property, automotive and others have not been able to fully recover. However, at least there has been an improvement in performance this year compared to 2020. The retail sector and consumer also considered to be a sector with a faster recovery.

In terms of valuation, he observed that several stocks in the property sector are still quite attractive. Among them are PT Bumi Serpong Damai Tbk (BSDE), PT Alam Sutera Realty Tbk (ASRI), and PT Surya Semesta Internusa Tbk (SSIA) which is currently trading below its book value. Recently price to book value (PBV) BSDE was at 0.85 times, ASRI at 0.50 times, and SSIA at 0.61 times.

“The slowing purchasing power of the public and the upper middle class and manufacturing expansion has put pressure on the listed companies. So that this will also put pressure on the performance of listed property companies and industrial estates, “he added.

It’s just that the stimulus from the government is expected to have a positive impact on performance. He gave recommendations buy stock BSDE with a target price of IDR 1,300, buy ASRI with a target price of IDR 272, and buy stock SSIA with a target price of IDR 525. Meanwhile, Okie gave neutral recommendations for the sector consumer.