There Are Several Positive Sentiments, JCI In June Still Has A Chance To Strengthen

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) still has the opportunity to strengthen throughout June 2023, after the last five weeks moving in the red zone.

Associate Director of Research and Investment Pilarmas Investindo Sekuritas Maximilianus Nico Demus said the weakening of the JCI in May was strengthened by technical analysis and growing sentiment. However, with the completion of the United States debt ceiling problem, the opportunity to strengthen the JCI is still open.

Nico said, the JCI in June will still be influenced by uncertainty. As is known, the room for increasing interest rates is still wide open because employment data in the United States still looks strong and solid.

"We see the JCI with a 50 percent probability potentially towards 6,470. There is hope that the JCI will potentially increase as long as the JCI is able to achieve an increase of up to 6,750," Nico said in his research, quoted Monday, June 5.

Furthermore, Nico said, in the second half of this year the JCI movement could be better thanks to the sentiment of the vice presidential candidate market (cawapres) ahead of the 2024 General Election.

"This will play a positive sentiment, especially ahead of the election," he said.

Meanwhile, monthly sentiment will range from the mid-month Fed meeting which has the potential to result in a decision to raise the benchmark interest rate. In addition, there is also sentiment at the inflation rate and the release of a number of important economic data from the Asian and European regions.

"We see that this month the sectors that will play come from technology, infrastructure, finance, and consumer cyclical," Nico added.

As of May 31, 2023, the JCI closed at the level of 6,633.26. This figure reflects a correction of 282.46 points or 4.08 percent compared to the closing of April 2023. By year to date (YtD), the JCI has weakened 3.17 percent.

Trading data from PT Bursa Efek Indonesia (IDX) during the period 29"31 May 2023 showed varying data. The average daily transaction volume of the Exchange during the week was recorded to have increased by 138.50 percent to 41.64 billion shares from 17.46 billion shares in the previous week.

Meanwhile, the average daily transaction value (RNTH) rose 69.67 percent to Rp17.17 trillion from Rp10.12 trillion in the previous week. However, the JCI decreased by 0.80 percent from 6,687.001 last week to 6,633.26.