The JCI on Monday is Predicted to Continue to Rebound, These are Stocks that Investors Can Pay Attention to

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (IHSG) is predicted to have the potential to continue the rebound on Monday May 22 trading, after last week it strengthened 0.56 percent or rose 37.44 points to 6,700.56.

The Phintraco Sekuritas Analyst Team explained in their research that the composite index rebound at last week's closing confirmed the gravestone pattern as an indication of a bullish reversal. MACD is forming a narrowing negative slope.

The movement of the JCI on Monday's trading will be influenced by the sentiment of the BI Board of Governors Meeting on Thursday 25 May. The market expects that BI will lower interest rates or the worst case is to maintain the benchmark interest rate at 5.75 percent.

"BI has the opportunity to reduce the benchmark interest rate with the worst possibility of continuing to maintain the benchmark interest rate at 5.75 percent. This is in line with Indonesia's inflation which has subsided and the state budget deficit has returned to the level before the COVID-19 pandemic," explained Phintraco Sekuritas.

In addition to the sentiment from the BI RDG, the Fed meeting will also be JCI sentiment tomorrow Monday. According to analysts, market players are still waiting for the results of the May 2023 FOMC minutes, next Thursday.

The Fed has the potential to increase its benchmark interest rate again but limited to 25 bps at the June FOMC meeting, in line with the benchmark interest rate which has almost reached its peak.

Phintraco Sekuritas set the JCI resistance level at 6,780 and the support level at 6.560. Along with this analysis, several stocks became Phintraco's choice.

"Market players can watch for opportunities for further strengthening in ASII, BBNI, LSIP stocks and opportunities for rebounds in PWON, TLKM, ANTM," added Phintraco Sekuritas' research.