JAKARTA. During the third quarter of 2016, Indonesia Stock Exchange (IDX) recorded the highest growth among Asia’s stock exchanges. However, the Jakarta Composite Index (JCI) has been declining during the recent two months. JCI had been increasing by 9.46% since the beginning of this year until the last week.

Few days ahead of 2017, investors have started monitoring the selected stocks for the next year. The prices of commodities, as well as the government infrastructure projects will be the major factors, which affect to shares prices.

Director of Investa Saran Mandiri Hans Kwee suggests investors to monitor the shares of coal producers, following the increase in the price of this commodity. “The coal price will be ranging at US$ 70-US$ 80 per metric ton,” Hans predicts. In the coal sector, he favors of PT Adaro Energy Tbk (ADRO) and PT Bukit Asam Tbk (PTBA) stocks.

Head of Research at Daewoo Securities Taye Shim still recommends ‘buy’ to the shares of consumer goods issuers, such as PT Indofood CBP Sukses Makmur Tbk (ICBP), PT Gudang Garam Tbk (GGRM) and PT Surya Citra Media Tbk (SCMA). He also recommends ‘trading buy’ of BBCA dan LSIP’s shares.

Meanwhile, analyts at Panin Sekuritas Kristiadi favors of the shares of construction, telecommunication, property, and CPO issuers in the Fire Rooster Year. “Investors are suggested to choose some shares, which are supported and directly affected by the (increase in) commodities (prices),” Kristiadi said.

He recommends ‘collect’ for the shares of PT Waskita Karya Tbk (WSKT), PT Wijaya Karya Beton Tbk (WTON), PT Ciputra Development Tbk (CTRA), PT Bumi Serpong Damai Tbk (BSDE) and PT Telekomunikasi Indonesia Tbk (TLKM).

The big caps (capitalization) shares will likely remain the mainstays to fulfill the investment portfolio in the next year. However, analyst at Panin Sekuritas Frederik Rasali reminds the investors to conduct portfolio diversifications, depend on the risks’ characters. “Therefore, each investors should arrange the portions for big caps and small caps,” Frederik said.

Hans added, the big caps shares have more liquidity than mid-caps and small caps so that the investor will be easier in conducting transactions in the market.

In selecting the shares, investors need to consider the issuers’ business prospects and investment strategies. The shares will be attractive if the return of equity reaches 15%. Investors may consider the shares of issuers with a 15% increase in sales, as well as attractive profit margin.

(Muhammad Farid/Translator)

Editor: Yudho Winarto