Project JCI At Level 7,640 This Year, HSBC Analyst: Beware Of The Running Of Foreign Funds To Thailand And China

JAKARTA - The Hong Kong and Shanghai Banking Corporation (HSBC) projects that the Composite Stock Price Index (JCI) will break through the level of 7,640 by the end of 2023, which is supported by commodity stocks.

"We hope that all sectors can support the JCI, but selectively, commodity stocks are still attractive," said HSBC Herald's Asia Pacific Equity Strategy Head van der Linde in a media briefing "Asian Outlook 2023" quoted by Antara, Monday, January 16.

He admitted that he really appreciated the story of Indonesia's economic growth. Together with India, the story of Indonesia's growth is considered better than the entire Asia Pacific region, especially from the point of view of equity.

This condition is of course driven by the commodity sector, which is indeed soaring globally, but domestic consumption is no less boosting Indonesia's economic performance. In addition, the banking system in Indonesia also looks relatively good.

Despite having a significant impact on economic growth, the Herald reminded the Indonesian economy that in 2022, most of which are supported by commodities, could be a problem. The reason is, there is a possibility that the sector will perform poorly in 2023.

Therefore, Indonesia's economic performance could have decreased slightly compared to other countries in the Asia Pacific region because Indonesia has become a very strong player last year.

"Thus people will tend to leave Indonesia to fund other markets such as Thailand or China," he said.

As a result, he continued, this condition is likely to slightly limit the performance of the Indonesian market in 2023, so it must be considered more.

JCI opened at the level of 6,637.31 this morning. Although it is currently still perched below the level of 7,000, many parties are optimistic that the JCI will continue to increase throughout 2023.