Riska Afriani, analyst at OSO Sekuritas, believes Indonesia's big cap stocks have limited room to advance in the remainder of 2017 because they have already shown significant growth so far in 2017 (in line with the rising benchmark Jakarta Composite Index that touched a record high in July 2017). However, some big caps may still show some more marked movement than others.
For example, Bank Negara Indonesia (BNI), one of Indonesia's leading banks, should be able to increase its market capitalization (market cap) at the expense of cigarette manufacturer Gudang Garam's market cap as Indonesian banking shares are currently attractive, while the tobacco industry is heading for its "sunset".
Another attractive big cap is diversified conglomerate Astra International. This company saw its shares contract after reporting falling car sales in Q2-2017. However, given the company's positive future prospects it is now actually a great moment for investors to purchase Astra shares. OSO Sekuritas set its share price target for Astra International at IDR 8,750 a piece, while the actual share price was IDR 7,900 a piece before the start of trading on Monday (21/08).
Another Indonesian big cap stock that can still show solid growth in the remainder of 2017 is Bank Mandiri. OSO Sekuritas set its target for the state-controlled bank at IDR 14,500 a piece, while its shares were at IDR 13,100 a piece before the start of trading on Monday (21/08).
Meanwhile, investors are advised to hold on to shares of Telekomunikasi Indonesia (Telkom), Bank Central Asia (BCA) and Unilever Indonesia as these three have limited room for further growth in the remainder of 2017 (possibly their growth paces will not exceed 2 percent in the remaining months). Telkom already surged 19.85 percent so far this year, while BCA and Unilever Indonesia saw their shares rise 20.97 percent and 26.93 percent, respectively.
Telkom is now the biggest company on the Indonesia Stock Exchange in terms of market cap. Its market cap reached IDR 482 trillion, or 7.5 percent of total market cap on the exchange (IDR 6,460 trillion).