Index Likely to Thrive on Jokowi Inauguration
20 October 2014 07:20 WIB
TEMPO.CO, Jakarta - After skyrocketing the Jakarta Composite Index (JCI) by 77.33 points (1.56 percent) to 5028.95 bps, the Jokowi effect is expected to continue today. Joko Widodo's swearing-in ceremony as president this morning is expected to be the stock market's main sentiment.
Helen Vincentya, chief researcher at Mega Capital Indonesia, said the officiation of a new government will undeniably rebuild investors' hopes on better economic performance and development. "The Jokowi effect will be back today," she said.
Helen recommends investors to consider construction and banking stocks, which—in addition to being influenced by the Jokowi effect—are on a technical rebound.
Specifically for banking stocks, Helen said that the release of banks' third quarter financial statements will prompt investors to buy. Although banks' may be having profit declines compared to last year's quarter three, this year's period's credit is still growing, keeping investors' expectations high on the sector's prospects.
"Banks' third quarter financial statements are starting to provide sentiments for banking stocks like BMRI, BBRI, and BBCA," she said.
PDAT | MEGEL JEKSON
