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Jakarta Post

Consumer goods stocks underperform JCI

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Fri, August 9, 2019   /  09:35 am
The Jakarta Post Image
A costumer buys some groceries at the new branch of PT Hero Supermarket on Friday, December 21, 2018 at Lagoon Avenue in Bekasi, West Java. (JP/Ni Nyoman Wira)

Stocks in consumer goods firms, a sector with the largest weighting on the local index, have been in bear territory this year despite the moderate growth booked by the Jakarta Composite Index (JCI), the main gauge of the Indonesia Stock Exchange (IDX). The sector is deemed important as it consists of several blue-chip stocks with the largest weighting on the index while at the same time its performance is often seen as a bellwether for the country’s consumer spending and people’s purchasing power. Stocks of consumer giant PT Indofood Sukses Makmur and PT Unilever Indonesia as well as cigarette maker PT HM Sampoerna and pharmacy company PT Kalbe Farma are listed within the sector. As of Thursday, the sector had lost 8.22 percent of its value and become the fourth-worst performer of 10 sectors. At the same time, the JCI expanded by 1.29 percent. Analysts believe the sl...