The Impact of Eid Mubarak on Stock Exchange in Indonesia

Eid Mubarak is about to come and many investors are competing to find out what stocks that should be collected along with the strengthening of purchasing power and consumption.
Based on the analysis in each year, here are the sectors that always have an excellent result towards the Islamic holiday:

  1. Telecommunication Sector. In this digital era, people mostly congratulate each other by phone, SMS, or online chat application. This activity will be the driving factors of performance improvement of telecommunication issuers. Several types of stock that are recommended by William Surya Wijaya, Vice President of Research of PT Indosurya Mandiri Sekuritas are shares of PT Telekomunikasi Indonesia Tbk. (TLKM) and PT XL Axiata Tbk. (EXCL).
  2. Retail Sector. Actually, there is no obligation to buy new clothes on the day of Eid al-Fitr. But in Indonesian culture, there is a strong habit that the holy day is identic by buying new clothes. In this case, Kevin Juido, Head of Research at PT Paramitra Alfa Sekuritas recommends PT Ramayana Lestari Sentosa Tbk (RALS) shares because the market segment of RALS is middle to lower class. On this kind of segment, if they get a holiday allowance (THR) mostly they will be so consumptive in shopping. In addition, Kevin also recommends the shares of ACES and LPPF because in the past month, the performances of PT Ace Hardware Tbk and PT Matahari Department Store Tbk have contracted to 11.57% and 15.99% respectively.
  3. Consumer Goods Sector. Towards Eid, the needs in this sector is increasing. Compared to the previous two sectors, this is the most excellent because if people do not buy new clothes for Eid or congratulate each other via online, it can be sure that they will still buy consumer goods for the big day. Some of the stocks worth mentioning by William are PT Unilever Indonesia Tbk (UNVR) shares, PT Nippon Indosari Corpindo Tbk (ROTI), and PT Indofood Sukses Makmur Tbk (INDF) shares.

So let’s take a look at some good stocks to buy and have a great holiday!

Leave a Reply