Indonesian Stocks Slump a ‘Buying Opportunity,’ Nomura Says

Investors should see the Jakarta Composite Index’s recent decline as a “buying opportunity” as Indonesia’s economy will benefit from “strong” commodity prices while “runaway” inflation is unlikely, Nomura Holdings Companies Inc. said.

PT Adaro Energy Tbk (ADRO), PT Astra International Tbk (ASII), PT Bank Mandiri Tbk (BMRI), PT Adaro Energy Tbk (ADRO), PT Indo Tambangraya Megah (ITMG), and PT Perusahaan Perkebunan London Sumatra Indonesia (LSIP) are among the stocks that will lead the rebound, given their “solid underlying fundamentals,” analyst Willanto Le said in a report today.

“The valuation of the Indonesian market is still far from demanding,” he wrote.