Investors Recommended To Buy Bank Stocks

TEMPO.CO, Jakarta - The Research Head of PT Trust Securities, Reza Priyambada, suggest investors to keep collecting stocks in banking sector.

The news of the reference interest rate being retained is believed to make global investors continue to buy stocks known as the most liquid. ''The market participants are advised to avoid the plantation sector's shares in short term," Reza said to Tempo.

As some regional stocks move in variation, the Jakarta Composite Index (JCI) of the Indonesia Stock Exchange managed to continue strengthening. The positive response towards the movement of global stock exchange then pushed the market participants to continue in purchase action. In the closing trade on Thursday, JCI rose 21 points (0.4 percent) to the level of 4,891.

Reza said the latest U.S. employment data prediction became a positive sentiment for global investors. It is contradicting the assumption that the U.S. economic growth is slowing down. Thus, such publication is establishing the expectation of the U.S. economy performance that will continue to improve. "The ADP National Employment data changed the perception of global investors," he said.

In the release of ADP National Employment agency, the new employment growth in the United States (US) in March is predicted to reach 191,000. The number increased 13,000 from the previous period.

Even so, the prices of some stocks which are rising significantly still have a chance to encourage the action in profit-taking. In this case, the stocks of consumption and  trade sectors are relatively vulnerable to technical corrections.

"The Estimation of market participants against those two stock prices are still too high," said Reza. The correction of plantation stock sector is more dominant due to the commodity prices of global palm oil which is declining. In yesterday’s trading, JCI was estimated to move in the level of 4,880 – 4,915.

MEGEL JEKSON