Selecting Discount Stocks When IHSG Valuation is Cheap

The Jakarta Composite Index (IHSG), which has corrected quite deeply since the beginning of the year, has made stock valuations tend to be cheaper than historical prices. This moment of the composite index dropping can be an opportunity for investors to accumulate discount stocks. However, sentiment from foreign fund outflows will be an obstacle to the market’s revival and delay the enthusiasm for buying activity. Equity Analyst at PT Indo Premier Sekuritas (IPOT), Imam Gunadi, sees that investors’ attention will quickly turn to big-cap stocks whose fundamentals remain solid but have been pressured by sentiment. In that case, opportunities arise because the valuations become much more attractive.