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The End of the Year is the Right Moment to Earn Profits Through Stock Collections with Cheap Valuations
Jumat, 13 Oktober 2023
REPUBLIKA.CO.ID, JAKARTA - As one of the Investment Managers in Indonesia, BNI Asset Management observes that the prospects for stock mutual funds are still bright until the end of 2023. According to BNI investment director AM Putut Endro Andanawari, currently stock valuations on the capital market are very attractive, because the market Corrected shares are the right momentum to collect shares with cheap valuations.
"The price is cheap, really cheap. The stock valuation price is attractive enough to enter, because of what? Because of Covid-19, our economy is still growing five percent," he said at a customer gathering with the theme "Investment Opportunities Against Interest Rate Policy Reference” in Jakarta, Thursday (12/10/2023).
Investors hunting for big cap to mid cap issuers with cheap and high quality valuations can pay attention to the IDX Value30 index. The index contains 30 stocks with low valuations, high liquidity and solid financial performance.
As the name of the index suggests, the new entrant shares have attractive valuations. Some are indeed cheaper compared to peers or when compared to the average valuation of the last 5 years.
Putut added that at the time of general elections (elections) there would also be a lot of money invested by investors in the consumer stock sector. Including consumer staples or sectors that produce goods for daily needs.
"In the future, our elections will be mostly about consumers and consumer staples. In the future, who will benefit from the elections? T-shirt producers, packaged rice, if the packaged rice goes to consumers, so BNI AM is looking for shares from here for active mutual funds," he said.
As information, the Bank Indonesia (BI) Board of Governors (RDG) Meeting on September 21 2023 has decided to maintain the benchmark interest rate at the level of 5.75 percent. BI's decision has taken into account the potential for the Fed to increase interest rates once again until the end of 2023.
Another domestic factor is the Indonesian economy which is still considered good. This is supported by inflation figures for August 2023 which remain maintained at the target range of 3.0 percent and the relatively stable rupiah exchange rate.
