The economy is predicted to improve next year, these stocks can be an option

ILLUSTRATION. Economic drivers sector stocks could be an option for next year.

Reporter: Kenia Intan | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. Economic conditions are expected to improve in 2021. At the same time, investors tend to switch to sector stocks cyclical.

In their research, Indonesian analysts Mirae Asset Sekuritas Hariyanto Wijaya and Emma Fauni revealed that uncertainty due to the Covid-19 pandemic will gradually disappear along with the development of the Covid-19 vaccine and the results of the presidential election of the United States (US). “Therefore, we expect investors to switch from defensive stocks to stocks cyclical and value stocks, “as written in the research released Wednesday (9/12).

This expectation is driven by the election of US President Joe Biden who tends to maintain geopilitical stability. As for the sectors that will be selected next year, such as the banking sector, nickel mining, coal mining, and plantation as crude palm oil (CPO).

In line with this research, the Head of Research at NH Korindo Sekuritas Indonesia Anggaraksa Arismunandar also observed that various sectors such as mining, construction and property began to show off at the end of 2020.

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It is predicted that stocks in the property and construction sectors are still considered prospective until next year. Anggaraksa explained that the catalysts that prompted include the Work Creation Omnibus Law which facilitates land licensing, increases the infrastructure budget in the 2021 State Budget, and the formation of sovereign wealth fund. Considering this, investors can look at stocks such as LANGUAGE, WSKT, PWON, and CTRA year 2021.

On the other hand, Anggaraksa observes nickel-producing stocks such as ANTM and INCO also still have a chance. This is in line with expectations of an increase in demand for these commodities.

For your information, Mirae Asset Sekuritas’ research explains that the increase in nickel prices is predicted to continue next year. This price increase was driven by increased demand for steel production, especially from China. On the other hand, the price hike is a form of anticipation for rising nickel demand for electric vehicle battery production.

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