Flash Focus Strategy - Potential change in weighting method; for GGRM, buy on weakness
by Hariyanto Wijaya, CFA, CPA (Aust), CMT (hariyanto.wijaya@miraeasset.co.id)
- IDX has proposed changing its index weighting method for the LQ45 and IDX30 indices to free float-adjusted market cap from full market cap.
- What could be the impacts? As a result of the index weighting method changes, LQ45- and IDX30-dedicated funds are expected to carry out rebalancing of their portfolios to mimic their benchmarks.
- Our viewpoint: In our view, any selling pressure on GGRM resulting from the potential index weighting method changes should create a “buy-on-weakness” opportunity, as GGRM is likely to outperform in 2019.
(See full report: https://goo.gl/pnkpUy )
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