Independent Securities Target JCI To Reach 8,400 In 2024

JAKARTA - Mandiri Sekuritas targets the Composite Stock Price Index (JCI) to reach levels of up to 8,400 by 2024.

Head of Sales Mandiri Investasi Vina Cahyadi menyampaikan optimismis tersebut berasal dari beberapa sentimen yang akan turut menopang penguatan JCI, seperti ekspektasi penurunan suku bunga Bank Sentral AS Federal Reserve atau The Fed pada 2024.

Vina added that at least the Fed will lower interest rates three times gradually until the end of 2024, potentially causing the JCI to strengthen.

"We believe that next year's JCI can touch in the range of 8,000 to 8,400. So the potential is still quite large," said Vina at the Mandiri Sekuritas Tower, Thursday, December 14.

On the other hand, Vina said investors also need to pay attention to the growth of issuers listed on the Exchange and he sees the profitability of the company's growth could grow by an average of 8 percent by 2024.

"Well, if for example price earnings [PE] or valuations from our stock market don't change, so it remains flat, for example, the JCI should be up 8 percent next year," he explained.

Vina added that other factors came from the sentiment of the 2024 General Election. Where at the time of the election it will absorb a budget of up to IDR 76 trillion and campaign funds are projected to contribute 0.8 percent to the Gross Domestic Product (GDP) of the Republic of Indonesia.

According to Vina, the sector that has the potential to benefit in 2024 is the cyclic and non-cyclic consumer sectors. Furthermore, sectors that will benefit from the Fed's interest rate reduction are the banking, property and infrastructure sectors.

However, Vina recommends neutral against the health sector, because it is projected that it will still grow even though the Covid-19 pandemic is sloping.

Meanwhile, sectors that have the potential to decline due to the slowdown in global economic conditions, namely the energy sector, because commodity prices have weakened so that exports are depressed.

"We estimate that with the supply and demand that weaken, commodity prices will also be depressed. So, like the energy sector and the material sector, we also don't like it. Well, the technology sector, at this time we still don't like it, because the profitability is also not visible," he concluded.