TEMPO.CO, Jakarta – William Surya Wijaya, an analyst from PT Asjaya Indosurya Securities, said the current condition of the Jakarta Composite Index (JCI) was stable and the factors affecting it were not yet permanent. He predicted that several sectors would dominate Indonesia’s stock market this year.

“It will be mostly dominated by the financial sector,” William told Tempo on Wednesday.

He said banking and property industries from the financial sector would excel, and that investors would invest in both given their potentialities, thanks to the country's stable economy.

“The inflation rate is good, so the financial sector will become a champion,” said William.

Another developing sector in this year’s stock market is the miscellaneous industry, with Astra being the largest issuer. Crude Palm Oil (CPO) from the plantation sector is mostly stable. Improving COP prices and increasing global demand will make CPO stay lucrative this year.

The mining sector, on the other hand, especially coal, will endure challenges since plummeting coal prices have yet to recover since last year. Moreover, the competition in the industry, coupled with the fluctuating oil prices, will also affect the dropping demand for coal. The coal industry, however, is hoped to improve when the rupiah depreciates against the US dollar, which spells higher exports than domestic use.

William said the important thing was that mining shares would no longer be dominant. He added there are many other sectors that were rapidly developing, such as the consumer sector, the shipping sector and the property sector, which would give a positive boost to the movement of the stock market.

“The mining sector no longer influences the stock market's condition,” said William.

YOLANDA RYAN ARMINDYA