Mirae Asset Sekuritas Predicts JCI Touch 7,400 Until The End Of 2023

Mirae Asset Sekuritas Media Day October 2023 (Photo: Aris Nurjani/VOI)

JAKARTA - The Composite Stock Price Index (JCI) is predicted to break through the 7,400 level until the end of 2023. This is supported by various sentiments that occur.

Mirae Asset Sekuritas Head of Investment Information Martha Christina said, if you look historically, the JCI almost always records strengthening in the fourth quarter every year, especially related to window dressing activity momentum.

"Throughout October and December in the last 10 years, the JCI scored an average return of 2.1 percent and 2.6 percent," he explained, Tuesday, October 17.

Martha said window dressing is an activity where institutional investors in the capital market beautify their portfolio so that their annual financial statements look better.

On the other hand, window dressing is generally carried out by buying more aggressive effects in the capital market, thus making the stock market move positively.

"Currently, market participants' attention is still on the Palestinian-Israeli conflict and prices for petroleum and other commodities, as well as the inflation rate and economic growth of the US. We believe market conditions will be more normal at the end of the year ahead of window dressing." he explained.

Martha said that in the long term Indonesia has excellent prospects. Driven by economic stability, the rupiah exchange rate, inflation, and various economic data.

Previously, Mirae Asset Sekuritas estimated that the JCI would be at the level of 7,600 by the end of the year, then revise the JCI projection to 7,400 by the end of 2023, and will penetrate 7,600 by the first quarter of 2024.

In addition, Martha recommends investors to choose from the bank, consumer, and energy sectors because they have positive performance, attractive valuation and bright prospects, including ACES, AKRA, BMRI, BBRI, CPIN, EXCL, HRUM, INTP, PRDA, and UNTR.