TEMPO.CO, Jakarta - Stocks in the banking sector continues to be the catalyst of gains for the Jakarta Composite Index (JCI). Agus Susanto, an equity analyst from Asia Financial Network, said that stocks from the banking sectors - especially those with large capitalizations - will be the main drivers of the Index’s uptrend.

This will remain true until the Federal Reserve Bank of America resets its policies at the start of 2015. “The sector is dominated by major banking corporations - such as BBRI, BMRI, and BBCA,” said Agus on Tuesday, September 9, 2014.

Apart from shares in the banking sector, shares of palm oil producing companies are also worth looking into. Higher palm oil prices combined with increased volumes of production has pushed the share prices of five leading companies in the sector into the green zone - AALI, SMAR, SSMS, LSIP, and SIMP.

The JCI broke its’ previous record on Monday, September 8, 2014, where it recorded a high of 5,262.57 points. However, the Index tumbled by 49.36 points, or 0.94 percent, to close at 5,197.12 points on Tuesday.

David Cornelis, the head of research at KSK Financial Group, said that shares in the infrastructure, mining, and consumer services sector are also worth looking into, as the fundamental and technical progress, as well as the liquidities of most companies in those sectors are in a very good position. However, with a weakening JCI, investors are warned to invest only in companies with large capitalizations to minimize the risk of losses.

According to David, what the market really needs to be concerned about is the fact that the JCI broke new records without being driven by the growth of companies with large capitalizations. “Investors need to be wary because it does not necessarily mean that blue-chip shares will break new price records too,” said David to Tempo on Tuesday, September 9, 2014.

In fact, it is second and third tiered shares that are selling at record prices - which may possible mean that investors need to be extra vigilant about losses when the JCI experiences a correction.

FAIZ NASHRILLAH