Completion of Tax Amnesty bill discussion in the House of Representatives (DPR) is foreseen to be a positive catalyst for the increase in the Composite Stock Price Index (JCI) and reduce the negative sentiment caused by Brexit. The shares of property companies such as PT Bumi Serpong Damai Tbk (BSDE), PT Ciputra Surya Tbk (CTRS), PT Ciputra Property Tbk (CTRP), and contracting property PT Total Bangun Persada Tbk (TOTL) will be the investors’ choice because some repatriation of funds tax amnesty are expected to be invested in a number of properties.
Franky Kumendong, analyst at UOB Kay Hian, said the tax amnesty will clear assets that were not originally reported and stored abroad. Ratification of Tax Amnesty Act provides certainty regarding the tax rates to be paid by taxpayers who declare their assets abroad. “The property sector is the sector that most benefited. Especially with concerns over the impact Brexit abroad, this is a chance for developers and contractors such as BSDE, CTRS, CTRP, and TOTL to strengthen its position, “said Franky. In the past week, the index of property stocks sector recorded an increase of 3.1%, the highest compared to other stock sector index.
Danpac Securities Research said the crisis in developed countries could be an opportunity for developing countries. For example, during the Greek crisis, the flow of foreign funds into developing countries has increased. “The effect Brexit will only occur within 3 months. The negative effects will be felt directly by the United States and China as a major trading partner Britain while Indonesia only effect of derivatives, “according to research Danpac. This week JCI is expected to have strengthening consolidation trend, likely at support level of 4792-4761 points and resistance level of 4848-4940 points.
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