#TITLE_ALTERNATIVE#

• Main Author: DWIJAYANTI YOGASWARA (19009056), DHIRA
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/14115
• Institution: Institut Teknologi Bandung

The economic stability is affecting the investment activity in a country, including stock market. Stock market has become promising investment to generate gain compared to the other investment. Investor tend to look for investment with high return in stock market. Indonesia Stock Exchange has Jakarta Composite Index (JCI) which is used as benchmark of stock performance and indicator of the stock price movement in Indonesia Stock Exchange. During the period of 2008 was the bearish phase for the capital market condition in Indonesia, it is indicate by the declining of JCI level to 1355,41 from 2745,83 which is decreasing 50,6%. According to Bloomberg data, in 2010 JCI has generated 46,13% rate of return compared to other stock index in Asia to the level of 3703,51 from 2534,36 in 2009. Two sectoral index which generate highest return in 2010 are consumer goods and trading and services sector. As a defensive stock, consumer goods sector is very promising for investor. Consumer goods sector is mainly related with demand and production activity in Indonesia. Trading and service sector is very sensitive to the exchange rate movement because the activity is mainly related with export and import. Thus, Investor should also consider with the risk that might arise during investment.