JAKARTA. Along 2016, stocks became the most profitable investment instrument, compared to other investment instruments. This reflects on Jakarta Composite Index (JCI) that grew by 15.32% to 5,296.71.

The increase in JCI exceeded the performance of state bonds (INDOBex Government Total Return) and corporate bonds (INDOBeX Corporate Total Return), which grew by 13.93% and 12.62%, respectively. The performance of JCI also surpassed the achievement of multi funds and the investment in ingot issued by PT Aneka Tambang Tbk (Antam).

Director of Panin Asset Management Rudiyanto said some factors, such as the tax amnesty program in quarter III 2016, the appointment of Sri Mulyani as minister of finance, and window dressing ahead of the end of 2016.

However, JCI once experienced sell-off in the quarter IV of 2016 due to external factors. “But, unpredictably, it hiked during the recent trading,” Rudiyanto said.

The second most profitable investment instrument is state securities. According to Investment Director of PT PT Sucorinvest Asset Management Jemmy Paul Wawointana, the state bonds market was overshadowed with bullish trend since the beginning of 2016, due to BI’s decision to cut the benchmark interest rate until seven times. But, “The yields of Indonesia’s government bonds were higher than the bonds of other ASEAN countries,” he said.

Jemmy suggests investors to be overweight in stocks instrument in 2017. The shares, which are worth to collect include the shares of infrastructure, construction, and commodities. “If inflation rate increases, the prices of commodities, including gold may be increase,” he said.

Jemmy recommends investors to allocate 25%-40% funds in stock exchange and 30% and in gold investment. The rest can be allocated in financial market instruments, such as banking deposits, corporate bonds with a less than one year tenor, and multi funds. He predicts that the JCI may strengthen to 5,700-6,000 in 2017.

Director of Bahana TCW Investment Management Soni Wibowo agreed that stocks will be the most attractive instrument in 2017. He recommends the shares of banking, telecommunication, and consumer sectors.

(Muhammad Farid/Translator)

Editor: Yudho Winarto