JAKARTA. Mirae Asset Sekuritas maintains its optimistic view regarding the consumer sector, but it remains cautious since the stock market has been volatile since the beginning of the year.
Mimi Halimin, Analyst of Mirae Asset Sekuritas, said that up to the first week of this month the Jakarta Composite Index (JCI) has dropped by 12.7% on a year to date basis (YTD). "We believe that the correction in share prices is caused by increasing uncertainty in the market," Halimin explained in his research report today.
There are two main factors driving the stock market volatility in Indonesia. First is the economic slowdown which has the potential to affect revenue and profit performance in the consumer sector. The second factor is the volatility of commodity prices.
Despite this, the Government of Indonesia has announced a stimulus package worth Rp 10.3 trillion to support a number of sectors. Including tourism, housing, and consumer purchasing power.
"We believe that the sustainability of government stimulus will be able to support the Indonesian economy during this outbreak," Halimin said. (KR/AR)