Jan 2, 2012

Misc-industry, consumer lead the market

Initiating the first trading in 2012, Jakarta Composite Index (JCI) today lowered 0.27% or 10.15 points to 3,811.83.
According to e-Trading Securities on its recommendations today, as quoted by Bisnis Indonesia,  the JCI may move within the range of 3,779-3,875. Several stocks to watch: SMCB and GJTL. In the last Friday, the index inched up 13 points or 0.34% to 3,821.99. All sectoral index rose except agriculture, misc-industry, property, and infrastructure.
What were the best three sectoral indexes in 2011, 2010, and 2009?
In 2011, the top three sectoral indexes were miscellaneous industry, trade and service, and consumer industry with capital gains of 34.38%, 21.8%, and 19.24% respectively.
In 2010, the top three sectoral indexes were trade and service, consumer industry, and miscellaneous industry respectively.
The top three sectoral indexes in 2009 were miscellaneous industry, mining, and consumer industry respectively.
The similar pattern
There is a similar pattern between 2011 and 2009. Miscellaneous industry and consumer industry have proven that they enabled to survive from the financial crisis in 2008.
What about commodities-based stocks? Mining and agricultural stocks are cyclical. Everyone knows that mining and agricultural stocks are following the commodities price.
But, something is interesting here. Finance index, that is propelled by banking stocks, were lagging in the last three years. But, many analysts still put their recommendations on the banking stocks.   

Disclosure: No position at the stock mentioned above.

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