Mirae Asset Predicts JCI Can Break To 7,915 In The Fourth Quarter Of 2024

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Mirae Asset Sekuritas Indonesia projects that the Composite Stock Price Index (JCI) can touch the level of 7,915 in the fourth quarter of 2024, with the retail sector showing positive performance.

Meanwhile, this prediction can be realized if the policy of cutting interest rates is realized by Bank Indonesia (BI) before the end of 2024, so that it will strengthen people's purchasing power and encourage increased household consumption.

"We see that controlled inflation and lower interest rates will create a more conducive investment climate, with consumption credit projected to increase and have a direct impact on strengthening several sectors, including the retail sector," Mirae Asset Sekuritas Head of Investment Information Martha Christina said in Media Day: September 2024 - Capitalizing on Rate Cuts: Driving Retail & Stock Market Growth in the 4Q in Jakarta, quoted from Antara, Thursday 12 September.

On this occasion, his party is paying attention to two sectors, namely the banking sector and the retail sector with the main attention to the fundamental performance of each company.

"House consumption is projected to strengthen in the fourth quarter of 2024," said Martha.

He continued, cutting interest rates and increasing consumer confidence will encourage the public to be more active in purchasing goods and services.

"Retail sectors, especially the consumer, fashion and electronic goods segments, are predicted to benefit significantly from this trend," said Martha.

On the same occasion, Research Analyst Mirae Asset Abyan Habib Yuntoharjo is optimistic about the prospects for the retail sector which is supported by urbanization, increasing digital technology adoption, expectations of lower interest rates that will have a positive impact on people's purchasing power, as well as the presence of a festive season at the end of the year.

With this background, he recommends overweight for the retail sector given the strong growth potential in the fourth quarter of 2024.

"Investors are advised to consider stocks in the retail sector, which are predicted to benefit from the momentum of economic recovery and increased domestic consumption," said Abyan.

Abyan also considered that increasing the productive age population and young consumers would be the main driver of long-term growth for the retail sector.

Young consumers who are more adaptive to modern technology and lifestyle trends also tend to have preferences for digital shopping, accelerate e-commerce adoption and spur innovation among retailers, said Abyan.