Window dressing tends to be limited, these stocks can be observed

Reporter: Kenia Intan | Editor: Herlina Kartika Dewi

KONTAN.CO.ID – JAKARTA. Stock price movements are usually stretched at the end of the year. However, for the end of this year, the potential for stock price increases is projected to tend to be limited.

Investment Information Team Mirae Asset Sekuritas Martha Christina revealed that the limited window dressing in December was due to stocks that had risen quite high since October 2021.

“Our index has started to rise since October, it has gone up quite fast and information about the Omicron variant will further limit stock movements,” he said in Mirae Asset Day which was held virtually on Thursday (9/12).

He further explained, the news about the new variant of the corona virus made the uncertainty in the market increase. Therefore, market participants tend to wait for news regarding the effectiveness of the vaccine to prevent the transmission of new variants.

As long as there is no confirmation regarding this matter, the potential for strengthening stock prices tends to be limited.

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Head of Investment Information of PT Mirae Asset Sekuritas Indonesia Roger MM added that the potential for strengthening stock prices does exist, but not all sectors experience it. The strengthening tends to be supported by stocks that are positively affected by the development of the corona case.

Meanwhile, Mirae Asset Sekuritas projects that the JCI in December 2021 will move in a limited range with a target of 6,591. The support level is at support at 6,394 to 6,480, while the resistance level is at 6,618 to 6,687.

One sector that is still the choice of Mirae Asset Sekuritas is banking. Martha observed that throughout November-December, banking performance accelerated in line with credit growth.

Just so you know, as of October 2021, credit growth rose 0.1% month on month (mom) or 3.2% on a monthly basis. year on year (yoy). This achievement is the highest since April 2020. On the other hand, the growth of Third Party Funds (DPK) is higher than credit which makes the Loan to Deposit Ratio (LDR) at the level of 79%.

Some of the stocks he suggested were BBCA with a target price of Rp 8,350 per share, BBRI with a target price of IDR 5,425 per share, BMRI with a target price of IDR 9,975 per share, and BBNI with a target price of IDR 9,000 per share.

In addition, UNTR can also be an option with a target price of IDR 30,000 per share. Meanwhile, UNTR was supported by heavy equipment sales in October 2021, which rose by 30% mom or 93% yoy. Its performance improved in line with increasing demand from the mining, construction and plantation sectors. UNTR is also optimistic that sales of heavy equipment will increase by 20 percent next year.

Other stocks worth watching are ASII. The extension of the sales tax discount on government-borne luxury goods (PPnBM DTP) until the end of the year is a positive catalyst.

In addition, automotive sales in November 2021 are also approaching the normal rate as in 2019, which is 90,000 units per month. Apart from ASII, infrastructure stocks, especially telecommunications, such as TLKM, ISAT and EXCL can be observed.

Also Read: Here are the investment opportunities in the stock and bond markets in 2022

Meanwhile, Analyst of Jasa Utama Capital Sekuritas, Cheryl Tanuwijaya, observed that the movement of stocks that touched the highest level recently was actually inseparable from window dressing.

As for the end of the year, he predicts the JCI could touch the level of 6,800. One sentiment that will help is the cancellation of the PPKM level III plan during the Christmas and New Year holidays. This sentiment began to be reflected in the rally for four consecutive days since the cancellation was announced by the government.

Responding to the increase in stock prices that will continue until the end of the year, he advised investors to continue to follow prospective stocks with large positive performance opportunities in the future. Some of the stocks he suggests are coal, transportation, and financial stocks such as ADRO, ASSA, and BBRI.