REPUBLIKA.CO.ID, JAKARTA -- President Joko 'Jokowi' Widodo's vision to develop the country's infrastructure has boost the prospect of Indonesia's construction and banking stocks.
The president's program will also surge shares of companies engaged in cement industry.
"Economic growth is slowing, but banking can still gain net interest margin," Head of Research Universal Broker Indonesia Satrio Utomo said on Monday, November 10.
In the other side, retail and consumer stocks are expected to underperform due to economic slowdown. Overhead increasing also cause the declining of profit. Mining and agricultural stocks will continue slowing down. Mining stocks will be affected by government policy on mineral export ban imposed in January 12, 2014. The performance is expected to recover if companies start building smelter.
Meanwhile, plantation stocks will recover, along with economic recovery in the US. It is believed that the US economic recovery will revive other countries such as India and China, the importers of crude palm oil (CPO).
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