J.P. Morgan sees IDX at 7,000 this year, flags hurdles to 6% GDP growth
Corporate earnings growth next year is projected to reach 9 percent, driven by government spending and investment.
J.P. Morgan anticipates corporate earnings growth of 9 percent next year, fueled by government spending and investment. Benny Kurniawan, head of Indonesia Equity Research at J.P. Morgan Indonesia, revealed in a media briefing that the Indonesia Stock Exchange (IDX) Composite index is projected to hit 7,000 by year-end. However, achieving a 6 percent economic growth rate next year hinges on greater stability and certainty in the market.
Despite multiple global and domestic challenges faced by the local stock market, publicly listed companies reported a 6 percent year-on-year earnings growth in the first half of the year. Benny emphasized that the economy is expected to remain stable, although the team anticipates GDP growth to slightly fall short of the 6 percent target by year-end.
The J.P. Morgan team maintains optimism for Indonesia's capital market, citing strong corporate earnings growth despite challenges in certain segments due to rising input costs.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
