Research

Where Would IHSG Close In November?

market-avatar

Algo Research Team

Market | Nov 02, 2022 | Views: 14

The content provided here is for informational purpose only. It is not an advise or recommendation. Please do your own research.
content-img

Key Summary:

  • IHSG has been trading range bound at 7,000-7,100 in the past few weeks
  • Big caps have been the main driver from october low
  • 3Q22 GDP, FOMC would be key events this month to decide the direction

IHSG has been driven upwards primarily by the big caps stock in the past 2 weeks, where 5 of the biggest stocks with positive contributions coming from big-4 banks (BBCA, BBRI, BMRI and BBNI) and AMRT, which drove IHSG up 3-4% from its low in October (6,700-6,800) to close around 7,000. Decent earnings results by the banks gave optimism for traders and investors especially guidance on 2023F that is still broadly positive for loan and asset quality.


We disagree, as we think 2023 would be a major slow down from 2022 pulled by lower trade (lower commodity prices), consumption (decrease in purchasing power, inflation) and investment (high interest rate, uncertainty of Presidential election in 2024). The only growth could come from government consumption that would likely be targeted for infrastructure and lower-income.

How was our research?

DISCLAIMER: Algo is an independent research platform and is not affiliated with any financial institution. We are not a licensed securities dealer, financial advisor, broker, or investment bank. The contents shared across our website, and social media platforms are intended for informational purposes only and reflect our views and opinions. It is not meant to be construed as financial advice and/or a recommendation to buy or sell an asset. Past performance does not guarantee future results. As a research platform, our contents are made to provide data-driven information and research-based articles, and should not be used as a basis for making any investment decisions. We strongly encourage you to conduct your own research and consult with a licensed financial advisor before making any investment decisions. Algo is not regulated by OJK (Otoritas Jasa Keuangan) and does not provide any investment services. We are not responsible for any financial decisions you make based on the information provided. All content is presented with the intent of informing only.