JCI Potentially Weakening Friday, Check Out Stock Recommendations

JAKARTA - The movement of the Composite Stock Price Index (JCI) is projected to weaken again in the first trading weekend of January 2022, Friday 7 January after yesterday closing trading in the red zone with a correction of 0.13 percent or 8.95 points so that it parked at the level of 6,653.35.

Artha Sekuritas analyst Dennies Christopher Jordan said that the JCI closed lower yesterday, continuing the previous day's correction.

He said that from within the country, the movement of the index was pressured by the energy sector where the government would impose a ban on coal exports. In addition, there are still concerns that the Fed will be more aggressive in raising interest rates.

As for today's trading, Dennis predicts the JCI will weaken. He explained that technically the lower high and higher low candlesticks were accompanied by a widening stochastic after forming a deadcross indicating a weakening trend.

“The movement is still overshadowed by concerns that the Fed will be aggressive in raising interest rates. From within the country, investors will pay close attention to the release of foreign exchange reserve data,” wrote Dennies in his daily research.

Dennies estimates that JCI will move with support at 6,604 and 6,555 and resistance at 6,690 and 6,727. The stocks he recommends include PT Japfa Comfeed Tbk (JPFA), PT Wijaya Karya Tbk (WIKA), PT Sarana Menara Nusantara Tbk (TOWR).