Navigating Market Volatility: Strategies for Rotating Between Mining and Consumer Stocks

Flooring Guide by Cinvex – , JAKARTA — A confluence of factors, including the depreciation pressure on the rupiah, global index rebalancing sentiment, and the recent hike in the BI Rate, is compelling market participants to strategically recalibrate their stock portfolios. Amidst this challenging market environment, investors are strongly advised to meticulously identify resilient sectors capable of safeguarding their returns.

Nafan Aji Gusta Utama, Senior Market Analyst at Mirae Asset Sekuritas, elucidates that embracing a strategy of collecting defensive value stocks emerges as the most rational choice currently available. This necessitates a pivot towards issuers distinguished by robust fundamentals and pristine financial balance sheets.

The primary criteria for curating this select list of recommended stocks focus on issuers with a low foreign currency debt ratio. Furthermore, a strong internal cash position is deemed critical to ensure that a company’s performance remains unburdened by a high cost of capital.

“The banking sector remains an appealing choice given its solid fundamentals. Moreover, the industry’s cost of fund levels have remained relatively stable,” Nafan stated when contacted on Wednesday (20/5/2026).

Beyond banking, stocks within the commodity sector, particularly mining and energy, are also firmly on the recommendation radar. The inherent appeal of these sectors is underpinned by their attractive price-to-earnings (PE) and price-to-book value (PBV) ratios, which still represent good value.

Nafan further elaborated that the telecommunications sector also possesses the potential to mitigate portfolio corrections. This resilience stems from the consistently high public demand for connectivity-based infrastructure, which continues to drive growth.

For investors considering a portfolio rotation, a strategic shift from cyclical stocks to non-cyclical counterparts, such as those in the consumer sector, represents a prudent defensive maneuver.

The consumer sector, according to Nafan, is well-positioned to withstand the pressures of imported goods inflation, primarily due to its inherent pricing power—the ability to determine and adjust prices effectively.

Conversely, investors are cautioned to progressively reduce their exposure to growth stocks and businesses highly sensitive to interest rate fluctuations. The technology and property sectors, in particular, are identified as two key areas requiring heightened vigilance for the time being.

It is worth noting that Bank Indonesia (BI) recently increased its benchmark interest rate (BI Rate) by 50 basis points, bringing it to 5.25%. Correspondingly, the Deposit Facility and Lending Facility rates also saw increases, reaching 4.25% and 6%, respectively.

This monetary tightening introduces a new sentiment into the domestic capital market, coinciding with substantial foreign fund outflows and ongoing pressures from the MSCI index rebalancing.

Disclaimer: This news article is not intended as an invitation to buy or sell stocks. Investment decisions rest solely with the reader. Bisnis.com bears no responsibility for any losses or gains arising from readers’ investment choices.