Window dressing is predicted to continue, here are the stocks that need to be watched

Reporter: Nur Qolbi | Editor: Herlina Kartika Dewi

KONTAN.CO.ID – JAKARTA. Composite Stock Price Index (IHSG) has continued to rally since the end of September 2021. From the 6,100 level at the end of last month, the JCI on Tuesday (12/10) closed at 6,486.27.

Sucor Sekuritas analyst Hendriko Gani said the recent increase in the JCI was driven by investor window dressing. This action is usually carried out by companies towards the end of the year to beautify their investment portfolio.

According to Hendriko, this time window dressing mostly occurred in blue chip stocks, such as BUKU IV banking, shares of PT Astra International Tbk (ASII), and PT Telkom Indonesia (Persero) Tbk (TLKM).

Hendriko predicts that until the end of the year, these large market cap stocks can still be hunted as window dressing is still ongoing.

Head of Research at Kiwoom Sekuritas Indonesia Ike Widiawati also said that the JCI rose again today and had broken through the 6,500 level.

“This increase occurred in construction stocks, banking BUKU III and BUKU IV, and the most significant, namely coal stocks,” said Ike when contacted by Kontan.co.id, Tuesday (12/10).

Also Read: JCI rose 0.41% to 6,486 on Tuesday (12/10), foreign net sell reached Rp 428.61 billion

Kiwoom Sekuritas Indonesia analyst Sukarno Alatas added that mining and agriculture stocks were also sectors that were loved by the window dressing. Until the end of the year, Sukarno saw, the potential for window dressing action would continue so that it would continue to push the JCI up.

“The next movement if the JCI is able to penetrate the 6,504 level, it can continue to test the resistance at 6636-6,693,” said Sukarno.

Therefore, now is considered to be the right time for investors to re-enter the stock market. According to him, property stocks are interesting to collect because they still have the opportunity to continue strengthening.

Meanwhile, Hendriko recommended investors to buyBBNI with a target price of Rp. 8,000, BMRI IDR 8,900, BBRI IDR 4,200, and ASII IDR 7,000 per share. These four stocks were chosen because they have forward price earnings ratio (PER) and price to book value (PBV) which is lower than the average PER and PBV in the last five years.

Meanwhile, Ike saw that stocks that still had a high potential for growth came from the construction sector, such as ADHI, PTPP, LANGUAGE, WSKT, WSBP, WTON, and WAYS.

According to him, construction companies still have the potential to strengthen if they are able to penetrate the area of ​​price consolidation.