In 2021, These Shares Could Be Options To Earn Money

Illustration. (Photo: Unsplash)

JAKARTA - Recently, stocks have become an increasingly popular investment instrument and are starting to be liked by the public. This is due to the increasing public awareness that saving money in savings is not enough.

The year 2020 is only counting the days. Soon, we will soon enter 2021.

And to welcome 2021, a number of selected stocks can be observed by investors to compile their portfolios, along with the potential for the Composite Stock Price Index (JCI) which is expected to continue its increase from this year.

Mirae Asset Sekuritas analyst Hariyanto Wijaya in his research projects that the JCI target until the end of 2021 is at the level of 6,880, with a potential increase of 17 percent.

The reason is that this is supported by the recovery of income growth and investor preference for emerging market equity asset classes amid the continued weakness of the US dollar (US) in 2021.

"The bull case scenario for the JCI at the end of 2021 is 7,150. The bear case scenario for the JCI at the end of 2021 is 5,150," he said as quoted from his research, Tuesday, December 29.

According to Hariyanto, another sentiment is that Indonesia will benefit from the recovery of commodity prices in China, which is the world's largest commodity consumer. As is well known, China is the most important manufacturing center in the world.

Hariyanto said that China's manufacturing PMI expansion, new production orders and new orders for export are expected to increase commodity prices as one of the necessities for manufacturing activities.

"The recovery in commodity prices such as nickel and CPO should have a positive impact on Indonesia," he said.

Illustration. (Photo: Unsplash)

Apart from that, said Hariyanto, the weakening of the US dollar would also have a positive impact on emerging markets, especially Indonesia. He projects that the US dollar is likely to continue to weaken in 2021 due to the widening current account deficit (CAD) and fiscal deficit in the country.

The weakening US dollar tends to have a positive impact on commodity prices because it has a negative correlation. The Indonesian economy will also benefit from these lucrative commodity prices.

"JCI tends to post positive performance as long as the US dollar weakens," he said.

He said, when the current uncertainty is believed to gradually fade along with the development of the COVID-19 vaccine and a clearer US presidential election.

Hariyanto assessed that stocks that have the potential to generate cash for 2021 are the banking sector, nickel mining, plantations and coal mining.

For issuers' stock options, he recommended bank, poultry and commodity stocks such as PT Bank Rakyat Indonesia Tbk (BBRI), PT Bank Mandiri Tbk (BMRI), PT Bank Negara Indonesia Tbk (BBNI), PT Japfa Comfeed Indonesia Tbk (JPFA), PT Aneka Tambang Tbk (ANTM), PT Vale Indonesia Tbk (INCO), PT Perusahaan Perkebunan London Sumatra Indonesia Tbk (LSIP), and PT United Tractor Tbk (UNTR).

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"We are increasing our exposure to banks, namely BBNI, commodities especially coal and gold mining namely UNTR, JPFA poultry," he explained.

Recommendations for the Mega Investasma Award

PT Anugrah Mega Investama Director Hans Kwee projects that global liquidity will still be on an upward trend in 2021. This is likely to occur in line with both monetary and fiscal stimuli released by the government.

As is known, next year the government will still provide support to restore economic growth, after being affected by the COVID-19 pandemic.

Hans Kwee said that the loose monetary policy will lower the benchmark interest rate. So that it can benefit the property sector such as PT Bumi Serpong Damai (BSDE), PT Ciputra Development Tbk (CTRA), PT Summarecon Agung Tbk (SMRA), and PT Pakuwon Jati Tbk (PWON).

Summarecon Bekasi area. (Photo: Doc. Summarecon)

Furthermore, he explained that the process of economic recovery would certainly be a positive catalyst for the financial sector. He considered, in economic recovery the financial sector will recover earlier than in other sectors.

Hans Kwee assessed that stocks that are attractive for investment in 2021 are those of the banking sector.

"I think what is interesting from the banking sector such as BMRI, BBRI, BBNI," he said.

Factor Towards 6,500

Head of Research Samuel Sekuritas, Suria Dharma, said that to support the strengthening of the JCI to the level of 6,500 next year, there are various kinds of driving factors that need to be observed.

According to Suria, the main sentiment was caused by hopes of the effectiveness of the COVID-19 vaccine and the influence of the policies of the new President of the United States, Joe Biden. In addition, the job creation policy will encourage investment, thereby also spurring the JCI.

Not only that, Suria said that the prospect of the global economy is also expected to gradually improve. This is also driven by the policy of low interest rates so that investor interest in seeking higher yields will spur on the stock market.

BCA Building. (Angga Nugraha / VOI)

Suria said the index's strengthening over the past few years was driven by transactions from domestic investors.

Samuel Asset Sekuritas recommended several stocks that have the potential to continue to strengthen in 2021, namely mining companies such as PT Medco Energi Internasional Tbk. (MEDC), PT Aneka Tambang Tbk. (ANTM), PT Vale Indonesia Tbk. (INCO) and PT Bukit Asam Tbk. (PTBA).

Furthermore, shares of state-owned banking enterprises (BUMN) such as BMRI, BBNI, BBRI, and shares of the Djarum group of PT Bank Central Asia Tbk. (BBCA).

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