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Jakarta (ANTARA News) – The Composite Stock Price Index (IHSG) has the potential to continue positive growth in 2018. It is provided that the election of regional head (pilkada) is running smoothly and economic growth as expected.
JCI able to record a glorious performance throughout 2017. JCI able to rise 19.99 percent. The strengthening of JCI 2017 is also driven by the financial sector grew 40 percent, followed by basic industrial stocks rose 28 percent, and the consumption sector grew 23 percent.
Then, how the prediction of IHSG in 2018?
In research of PT Sinarmas Sekuritas, mentioned JCI will penetrate the level of 6,715 in 2018. It was driven from growth of earnings per share (eps) or net profit per share 9.9 percent or 17.6 times. The increase in eps's growth is higher than the 2017 position in the range of 8.3 percent. Similarly citing research PT Sinarmas Securities, Tuesday (2/1/2018).
JCI growth is also driven by relatively better economic growth in 2018. Indonesia's economic growth will be supported by commodity prices and strengthening household consumption. Indonesia's economy is expected to grow 5.25 percent-5.35 percent in 2018. Inflation is expected to stabilize in the range of 3.5 percent-4 percent.
In addition, PT Sinarmas Sekuritas's research stated that the government's social assistance budget, from non-cash food aid, village funds and social assistance, is expected to encourage public consumption, thus strengthening the 2018 economy.
The implementation of the Asian Games and ahead of a presidential election year is also expected to be a catalyst to boost private spending.
Meanwhile, PT OSO Securities analyst Riska Afriani said, JCI potentially to the level of 6,700-6,900 in 2018. JCI growth is supported by optimism of market participants on economic growth will improve. With economic growth improving, it can encourage issuers to make higher profits.
Riska added that the growth of the number of issuers in the Indonesian capital market is also one of the drivers of JCI growth. Riska said that Indonesia's capital market is still an attractive place for companies seeking financing through initial public offering.
In addition, although Indonesia is entering the political year, economic growth can still be positive. Plus external factors with global economic growth, especially the United States (US), which corresponds the path.
"The growth of the US economy will certainly boost exports, which has been exported to China and the United States," Riska said.Watch Selected Videos Below: