Analyst Recommends Shares in Mining Sectors

TEMPO.CO, Jakarta - The conflict in Ukraine continues to affect share prices around the world. However, the Jakarta Composite Index (JCI) continues to inch upwards as investors move towards riskier markets that are not directly affected by the conflict.

An analyst from OSO Securities, Mohammad Alfi Syahr, said that uncertainties in Ukraine has driven investors towards riskier markets as a realistic buffer against potential losses that may come from investing in US Dollars. "Investors would rather wait because there is a significant lack of information," said Alfi to Tempo on Monday, August 18, 2014.

As JCI's positive trend becomes less bullish, Alfi said that shares in the mining sector are worth looking into, as the jump in the prices of coal helped to ensure the future prospect of the mining sector. Among the shares worth collecting are PTBA, ADRO, and ITMG.

In addition to shares in the coal mining sector, investors are advised to look into companies that have released their corporate plan of action for the second semester of 2014.

According to an analyst from Trust Securities, Reza Priyambada, the JCI is predicted to hover around 5,138 to 5,142 points. "Resistance levels are at 5,162 to 5,172," said Reza. Another analyst from Asjaya Indosurya, William Suryajaya, predicts that the JCI will remain between 5,134 to 5,198 points.

MEGEL | DINI PRAMITA