Elections boost consumers & construction stocks

February 07, 2017, 03.39 PM  | Reporter: Dityasa H Forddanta
Elections boost consumers & construction stocks


JAKARTA. Only nine days left the concurrent local elections. Jakarta gubernatorial election is drawing the most attention among the local elections in 101 regions across Indonesia that will be held on 15 February. Understandably, Jakarta is the miniature of Indonesia. Let alone, most of the national money circulation is concentrated in Jakarta.

Some analysts estimate that market will not bother about who will come out as the winners in the elections. The most important thing is the elections will be running in safe and peaceful manners, no matter who will be elected as the Governors-Vice Governors.

If this political process runs well, the construction and infrastructure sectors will be more vigorous. As information, Jakarta has a number of strategic projects with the high values, such as mass rapid transit (MRT) and light rail transit (LRT) projects.

Head of Research at BNI Securities Norico Gaman said, whatever the result of this gubernatorial election may not terminate these projects.

Likewise, analyst at Panin Sekuritas Frederik Rasali said that Jakarta has a significant number of government’s projects. Therefore, the construction, infrastructure, and property sectors will be more vigorous after the election.

Aside of those three sectors, Frederik said, the media sector also takes advantages of the Jakarta gubernatorial election event. Some news related to the election have been effectively attracting the audiences. In other words, the local election moment has increased the rating of TV programs and subsequently boosted revenues from advertorial.

Each pair of candidates has their own specific programs. “Ahok-Djarot (the candidate pair number two) promises to simplify the bureaucracy and to create the corruption. Those will be benefitting for construction sector and direct investment,” analyst at UOB Kay Hian Securities Stevanus Juanda wrote in his research.

Meanwhile, the candidate pair number 1, Agus-Sylvi promise to distribute Rp 1 billion per neighborhood unit, as well as Rp 50 billion working capital to micro, small, and medium enterprises. This will bring positive sentiment to the shares of retail sector. “But this has just been at conceptual level. Stock market needs a clear track record,” Norico said.

The candidate pair number 3 Anies-Sandi has a program that is potentially to boost the shares of consumer sector, namely the program of OK-OCE (One Kecamatan One Centre of Entrepreneurship). (Muhammad Farid/Translator)


 

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