The JCI on Tuesday Is Expected to Continue Weakening, These are the Causes

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JAKARTA - The movement of the Composite Stock Price Index (IHSG) is expected to continue weakening in today's trading, Tuesday, May 2, after slipping 0.43 percent to 6.915.72 on Friday, April 28 trading.

Phintraco Sekuritas in its daily research said that technically the JCI closed lower after testing the resistance at 6.980. Stochastic RSI is in the overbought area, supported by the narrowing of the MACD positive slope.

"This triggers the potential for further weakness and another test of the support area of ​​6.880 to 6.900 on Tuesday," wrote Phintraco.

JCI movement will still be influenced by a number of sentiments entering May 2023. Meanwhile, from the external side, market players are anticipating the Fed's FOMC to be implemented on May 4, 2023.

So far, the financial performance of the first quarter of 2023 from the United States regional banks is expected to encourage The Fed to maintain the pace of interest rate hikes at 25 basis points.

"This has the potential to trigger a strengthening of banking stocks next week," explained Phintraco's research.

Domestically, investors will anticipate Indonesia's economic growth data for the first quarter of 2023 which will be released on May 5 2023. Indonesia's economic growth is expected to slow down to 4.95 percent year on year in the first three months of 2023.