Stock Sectoral Analysis
On this occasion we will discuss the sectoral analysis of shares and we also need to mention that previously we have also discussed macroeconomic analysis to determine the right time to enter and exit the stock market. Previously maybe some of us asked why we should study sectoral analysis of shares?
We immediately answered, that by studying sectoral analysis of shares, we as investors will know how the characteristics of each share in different sectors and in the end this will help us to make a decision whether we will buy or sell shares 🙂 especially when economic sentiment occurred in certain sector stocks.
Shares in the Indonesia Stock Exchange can be grouped into several sectors which include, among others,
- List of Agriculture sector shares
- List of shares in the Finance sector
- List of Mining sector shares
- List of shares in the Infrastructure, Utilities and Transportation sectors
- List of shares of the Consumer Goods Industry sector
- List of Basic Industry and Chemical sector shares
- List of Miscellaneous Industry sector shares
- List of shares in the Property, Real Estate and Building Construction sectors
- List of shares in the Trade, Services and Investment sectors
Shares that are in different sectors cannot be analyzed in the same way because each of these shares has different business characteristics so the way to analyze them must also be different.
For example, stocks in the Agriculture sector are most likely not as big as the shares in the finance sector, especially banking. This is because business objects handled by both are very different from each other.
Shares in the finance sector are strongly influenced by other interest rates as well as shares in the agriculture sector which are strongly influenced by world commodity prices (for example CPO or palm oil and coal).
Likewise, the business cycle that is passed is very different.
So when your banking shares experience a decline in prices, the first step to do is to compare them with other banking stocks (in one sector) whether only your banking shares are corrected or so are other banking stocks. If only your stock banking shares are corrected then the next step is to see what happens to your banking stock business, whether the results of your banking stock management decisions result in losses or other causes so that many investors sell your banking shares.
If it turns out that the correction is all shares in the finance sector, then the price correction is normal. And this shows that the price correction could be caused by sentiments originating from outside the banking company.
When you find the main cause that can cause correction in stock prices in the finance sector and how much time this sector will experience, you can glance at other stock sectors which are likely to have no effect on economic sentiment which can cause the stock price in the finance sector to be corrected. shares in the good consumer industry sector which is well-known as a defensive stock sector.
So by studying the sectoral analysis of stocks we can find out the characteristics of each stock that we will buy. So that we are able to choose stocks that are immune to any type of economic sentiment.
If you want to know the characteristics of each of the stock sectors on the Indonesia Stock Exchange, please open each of the stock sector lists above. There you will find a list of shares in each sector and the characteristics of the stock sector itself.
There are so many brief guidelines that we can give you about sectoral analysis of stocks. Finally we say thank you and are happy to work to realize your financial freedom