The atmosphere of a paper factory in Bandung Regency, West Java. Magic Sekuritas sees the performance of paper issuers as having the potential to grow positively. One of the factors supporting the increase in performance is the revision of the Green Procurement Guide regulations by the Tokyo Government in early April 2023.
Armfalcon.com, JAKARTA — Ajaib Sekuritas sees the performance of paper issuers as having the potential to grow positively. One of the supporting factors for increased performance is the revision of the Green Procurement Guide regulations by the Tokyo Government in early April 2023.
“This will certainly have a positive impact because it has the potential to increase exports of paper products from Indonesia to Japan,” said Analysis by Ajaib Sekuritas Financial Expert, Chisty Maryani, Friday (12/5/2023).
Based on historical data, in the last five years from 2018 to 2022, the export trend of Indonesian paper products is still fluctuating and tends to decline. In 2018, Indonesia’s paper exports to Japan reached US$255.5 million.
However, in 2022, exports of Indonesian paper products to Japan will reach US$259.7 million. Cumulatively, in the last five years the export value of paper products from Indonesia to Japan has reached US$1.29 billion.
The positive performance of these paper issuers will be reflected in the second quarter of 2023. The long-term prospects for the performance of paper issuers are also very positive due to the high demand for paper, both domestically and globally.
Currently, paper issuers are also starting to focus on diverting paper-based packaging to replace plastic products. The demand for the use of plastic products is quite high, considering the demand from trends e-commerce increase.
The negative catalyst for paper issuers comes from the potential decline in demand due to the slowing global economy. In addition to the sentiment of global market players on the United States market over the potential for debt default.
In addition, the decline in commodity prices kraft pulp on the global commodity market also became a negative catalyst. “From this negative catalyst, it is hoped that paper issuers will be able to strengthen their domestic market share so that their profitability can withstand potential risks from global pressure,” said Chisty.
Chisty recommends a number of paper issuer shares based on technical analysis May 11, 2023:
Support : 7,250
Cut loss: 7,100
Buy on weakness
Support : 5,875
Cut loss: 5,750