January Effect Will Topol IHSG On The First Day Of 2023, What Shares Are Worth Observing?

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) has the potential to strengthen on the first day of trading in 2023 due to the January Effect, although in December 2022, the JCI closed down 2.41 percent.

Head of Investment Information Mirae Asset Sekuritas Roger MM in his research, quoted on Monday, January 2, estimates that investors will pay close attention to stocks from several sectors in January 2023. Some of them are construction, as well as large-qualitalized stocks from the banking sector and consumers.

"It is very likely that investors will pay attention to several sectors from the construction and stocks of big banking caps and consumers," said Roger.

Meanwhile, Research Analyst Infovesta Kapital Advisori Arjun Ajwani weakening the JCI during December 2022 was triggered by a decline in several big cap shares.

Weakening also occurs in sectors that tend to be conducive, such as banking. The sector recorded a decrease of 6.26 percent during December 2022.

"For example, the weakening of four top 4 banking issuers and shares of energy blue chips such as ADRO and BYAN," said Arjun.

For example, shares of PT Bank Central Asia Tbk (BBCA) which fell 8.06 percent during December 2022 and parked at IDR 8,550 per share, from the position of IDR 9,300 at the end of November 2022. A similar downward trend was seen in the shares of PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI) which weakened 0.80 percent.

"The top 4 banking stock reached an all time high price in early December 2022 and after that investors began profit taking and their shares experienced price corrections. This is one of the factors that resulted in a decline in the JCI in December 2022," he explained.

Arjun said stocks have a large capacity of banking and energy sectors that have the opportunity to strengthen in January 2022, supported by strong fundamentals. Shares in the energy sector such as PGAS and BYAN, he said, could be an investor option because they have valuations that tend to be cheap compared to the average valuation of other issuers in the sector.

"If we look at energy stocks such as ADRO and PGAS also experienced corrections this month. And I think all of this could rebound in January because the fundamentals for these issuers are solid. They are also still undervalued compared to the average issuer in their sector," he said.