Lo Kheng Hong Accumulates Shares as Foreigners Sell, Check His Recommendations - Market Business
Seasoned investor Lo Kheng Hong assesses the selling actions by foreign investors in the stock market as the best momentum for accumulating shares, particularly in issuers with strong fundamental performance.
Lo Kheng Hong stated that conditions where foreign investors continuously offload their shareholdings are often accompanied by price pressure in the market. However, this situation opens opportunities for domestic investors to enter at cheaper valuations.
“When foreigners are fleeing and selling continuously, that’s the best time,” said Lo Kheng Hong after the Annual General Meeting of PT ABM Investama Tbk. (ABMM) on Wednesday (29/4/2026).
Lo conveyed that share price declines should not be met with panic. On the contrary, such conditions present an opportunity to buy shares in good companies at a discount.
He professed to remain optimistic about the prospects of the stock market amid the current fluctuations. Even, he described share price declines as a “golden opportunity” to increase investment positions.
“When shares are falling, be optimistic. This is a golden opportunity, you can buy good companies at cheap prices,” he said.
In his portfolio strategy, Lo tends to utilise market correction momentum to add to his shareholdings. He emphasised the importance of focusing on the quality of issuers’ fundamentals, rather than short-term price movements.
The sectors deemed attractive in the current conditions include the banking and commodities sectors. For commodities, he highlighted shares based on coal and palm oil as potential choices in line with global demand prospects.
In addition, Lo also reminded investors not to rush into cutting losses when share prices experience significant declines. According to him, such a step could instead lock in losses.
“When shares drop a lot, doing a cut loss is a big mistake. What should be done is to buy,” he asserted.
With this strategy, Lo believes investors can leverage market cycles to achieve optimal returns in the long term.
For information, the Composite Stock Price Index (IHSG) on Wednesday (29/4/2026) reached the level of 7,101.22, down 17.88% year to date (YtD). Over the same period, foreign investors have tended to engage in selling actions with a net sell of Rp48.38 trillion.
A number of shares driving the IHSG throughout the year so far are dominated by commodity shares. These shares are EMAS, MDKA, MEGA, MSIN, AADI, ANTM, BIPI, ADRO, ARKO, and BNBR.
Meanwhile, the shares pressuring the IHSG throughout 2026 are mostly big cap shares, such as DSSA, BBCA, BREN, FILM, BBRI, BRPT, BYAN, TLKM, MORA, and BMRI.