TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsConsumer goods stocks underperform JCI
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.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
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)
S
tocks 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 sluggish growth of consumer goods stocks is related to jitters among investors amid a looming slowdown in global and domestic economic growth.
“Many investors, especially foreigners, are opting out of risky assets like Indonesian stocks as global economic growth seems to be continuing to decline this year,” said Yosua Zisokhi, Samuel Sekuritas equity analyst.
As a result foreign investors have started to sell their blue chip stocks that mostly consist of consumer goods companies, such as HM Sampoerna and Indofood.
The threat of a slowing global economy has led investors to sell equities and turn to safer assets, such as bonds and gold.
