Increase in fuel,
PT Bahana Securities, a review of the actual increase in the price of fuel oil (BBM) subsidy for four times from 2005 to 2013. As a result, there are some sectors that will strengthen and weaken before and after the price adjustment policy is taken.The survey was conducted from policy to increase fuel price subsidies in March 2005, October 2005, May 2008 and mid-June 2013.
Head of Research at Bahana Securities, Harry Su explained, three months ahead of the rise in fuel price subsidies there are some positives moving sector.
"For example, the oil and gas sectors, consumer staples and telecommunications. Even if turbulent conditions, we still need to eat and the phone so that the third sector performance is good," he said in Discussion Performance and Outlook 2015 in Jakarta, Wednesday (10/22/2014).
While the sector is in the doldrums in the quarter before rising fuel prices are subsidized consumer discretionary sector (media, retail), automotive, property and sensitive to the condition of the bank as interest rates and inflation.
Furthermore, he explained, three months after the increase in fuel prices, the performance of the sector is writhing oil and gas sector, telecommunications, customer staples is maintained.
"The banking sector also rebounded after the automotive and fuel price adjustment subsidies. While the sector with an ugly performance over rising fuel prices, among others, consumer discretionary, and property and should be more careful in this sector," he said.
Harry recognized, while the fuel price hike subsidy reached 96 percent in 2005, the market fell as much as 6 percent and recovered within two months.
While within one month prior to the price adjustment, he added, some sectors have shown an increase in performance of the telecommunications sector, consumer staples, banking, oil and gas, and infrastructure. While that performance under plantation and property, as well as the cement sector, automotive and metal shows severe performance.
"So in fact the market understands that high fuel prices rise, so that the subsidy is reduced. The money savings can be more productive sectors. Do not hesitate to make Mr. Jokowi raise subsidized fuel prices," he said. (Property sector shaken After Fuel Subsidy Will Rise)
