Sluggish Commodity Prices Cause Decline in Stock Index of 30 Companies
KONTAN.CO.ID - JAKARTA. The sluggish commodity prices have triggered a decline in the stock market index of 30 companies listed on the stock exchange. The stock market is still under pressure, as the Composite Stock Price Index has weakened by 0.74% since the beginning of the year.
Both value stocks and growth stocks are affected, as evidenced by the movements of the IDX Value30 and IDX Growth30 indices, which have weakened by 3.91% and 0.73%, respectively, since the beginning of the year.
Research Analyst from Reliance Sekuritas, Lukman Hakim, observes that energy and coal stocks are weighing down the IDX Value30 and IDX Growth30 indices. The negative sentiment stems from the global drop in commodity prices.
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The IDX Value30 index is the most affected due to its large weight of energy sector companies.
"Coal stocks have experienced the highest decline in the index, and coal prices have been trending downward," said Lukman.
ADRO had the largest decline among the IDX Value30 stocks, plummeting by 24.68% since the beginning of the year. ENRG and INDY also had poor performance, declining by 19.05% and 18.68%, respectively.
ENRG and INDY were also among the worst-performing stocks in the IDX Growth30 index. ADRO was the worst performer in the IDX Quality30 index as well.
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However, the IDX Quality30 index has still strengthened by 1.46% since the beginning of 2023. The increase was supported by the rise in consumer goods stocks. Senior Investment Information from Mirae Asset Sekuritas, Martha Christina, believes that stocks in all three indices are still worth considering, but their growth potential will be limited.
"With the normalization of commodity prices, the prices of stocks in this sector will decline," she said.
Martha views stocks in the IDX Quality30 index as more attractive than those in the IDX Value30 and IDX Growth30 indices. IDX Quality30 includes stocks from various sectors, mostly market leaders. Martha recommends buying BBCA, BMRI, CPIN, and INTP stocks.
Lukman also believes that stocks in the mining sector are still worth considering due to their low valuation. He recommends buying UNTR with a target of Rp 31,250, INDY at Rp 2,650, and PNLF at Rp 496 per share.
