Blue Chip Stocks Worth Watching as the IDX Composite Reach a Record High

STOCK TO WATCH - JAKARTA. A number of blue chip stocks on the Indonesia Stock Exchange (IDX) are worth considering after the Composite Stock Price Index (IHSG) hit a record high.

The IHSG again hit an all-time high during intraday trading on Wednesday (13/3) at the level of 7,441.61 at 14:52 WIB.

Although it flattened, the IHSG managed to stay above the 7,400 level until the end of trading on Wednesday (13/3). The IHSG closed up 0.53% or 39.30 points to the level of 7,421.20.

Equity Research Analyst Kiwoom Securities Miftahul Khaer explained that the strengthening of the IHSG in recent days is inseparable from the strengthening of the majority of stock exchanges in Asia and globally.

In addition, data from the Indonesian Consumer Confidence Index (IKK) in February 2024 was at the level of 123.1, indicating that the Indonesian public is still quite optimistic.

"The announcement of dividend distribution from the state bank and the plan for dividend distribution from PTBA will also increase the enthusiasm of market players lately," Mifta told Kontan.co.id, Wednesday (13/3).

Maximilianus Nico Demus, Associate Director of Research and Investment Pilarmas Investindo Securities observed that the strengthening of the IHSG was driven by the euphoria of dividend distribution that has begun.

Shares with large capitalization or big caps were observed to drive the movement of the IHSG. The biggest boost to the IHSG came from the Barito Group entity, PT Chandra Asri Pacific Tbk (TPIA).

Based on data from the Indonesia Stock Exchange (IDX), TPIA strengthened by 11.7% to the level of Rp 6,225 per share. With a market capitalization of Rp 539 trillion, TPIA contributed 20.69 points to the movement of the IHSG.

Followed by, shares of PT Bank Mandiri Tbk (BMRI) contributed 13.67 points. Then there is PT Amman Mineral Internasional Tbk (AMMN) and PT Bank Rakyat Indonesia Tbk (BBRI) each contributing 8.50 points and 5.82 points to the IHSG.

Nico said that if observed, there has actually been a sector rotation. Every month, even every week. But lately, banking stocks have been targeted because of dividend distribution.

This certainly drives an increase in its market capitalization. Take for example, BBRI has even managed to take its position as the second largest capitalization stock on the IDX.

BBRI managed to shift the capitalization of PT Barito Renewables Energy Tbk (BREN) shares. As of Wednesday (13/3), BREN's market cap reached Rp 823 trillion, which is below BBRI's Rp 960 trillion.

Investment Consultant Reliance Securities Reza Priyambada believes, the euphoria of Prajogo Pangestu group stocks is starting to decrease. That doesn't mean its performance is not attractive.

Generally, stock market transactions are certainly followed by existing sentiments and prospects. For example, when the stock price of the Prajogo group strengthens, there is a reprimand from the IDX.

"Market players might think instead of later these stocks being suspended and unable to trade, it's better to look for other stocks," he said.

In the midst of this euphoria, there are still some big cap stocks that investors can consider. Reza favors BBCA shares with a target price of Rp 11,150 per share, BBRI with a target of Rp 7,250 per share, BREN at Rp 7,250 per share, AMMN at Rp 8,900 per share, and TLKM at Rp 4,500 per share.

Then the big cap stocks favored by Nico are mainly BBCA, BBRI, BMRI, BBNI and TLKM. Meanwhile, Kiwoom Securities' choice of stocks is on ASII with a buy recommendation and a target price of Rp 5,600 per share.

Just for information, BBCA, BBRI, BMRI, BBNI and TLKM shares are listed on the LQ45 Index. These stocks are also known as blue chip stocks on the IDX.

Blue chip stocks are stocks with strong fundamentals and large market capitalization values, reaching tens to hundreds of trillions of rupiah.

Editor: Hasbi Maulana