For the brave, Indonesian stocks are a buy - but only if you do your homework, according to Goldman Sachs.
The United States investment bank said the rubble of the region's most troubled economy - which some observers said could shrink up to a quarter this year - included a select band of firms worth picking up.
The Goldman call reflects an increasingly popular strategy among investment houses that advise clients to shift towards identifying the concerns most likely to survive the region's debilitating crisis, rather than simply buying the lead index in the hope of a spike upwards.
'Within the regional context, we recommend an overweight position in Indonesia; this is based on bottom-up analysis rather than a signal of confidence in the macro-environment,' it said.
Goldman listed six firms that were either US dollar earners, possessed cheap assets relative to the replacement costs or had sufficiently robust brands or balance sheets to stand a good chance of weathering the crisis affecting the region.
The hopeful half dozen comprised oil exploration and production firm Gulf Indonesia, polyester-maker Indorama Synthetics, plantation-developer Astra Agro Lestari, cigarette manufacturer HM Sampoerna, pulp and paper firm Indah Kiat and noodle leviathan Indofood Sukses Makmur.
Goldman admitted the approach could founder should the country's socio-political situation worsen.
