After The Long Eid Holiday, The JCI Is Predicted To Weaker Today
JAKARTA - The movement of the Composite Stock Price Index (JCI) is predicted to weaken after the 2022 Eid holiday. Several external factors are expected to contribute to the weakening of the JCI.
Associate Director of Research and Investment Pilarmas Investindo Sekuritas Maximilianus Nico Demus predicts the JCI will weaken after the Idul Fitri holiday due to rising interest rates in a number of major economies.
"The increase in interest rates was not only carried out by the Fed, but India also raised interest rates by 40 basis points. Australia and the UK also did the same thing," Nico said in his research, quoted on Monday, May 9.
He continued, looking at market movements over the past week, markets in the Asian region also experienced a weakening. According to him, investors should pay attention to market stability and volatility.
"This is an important concern, after the Eid holiday, and suddenly it comes in, its stability and volatility will increase much more. So we see there is a big enough opportunity for the JCI to weaken," he said.
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However, according to Nico, Indonesia's economic fundamentals are one of the concerns to help prevent the JCI correction from getting too deep. He believes, if there is a correction due to the increase in global interest rates, the correction will only occur in the short term.
In the medium and long term, Nico sees tremendous potential for the shares in the JCI, especially for issuers that have reported their financial performance and have performed well.
"Issuers who have reported their financial performance, and in the end, are good, are following the economic recovery that has occurred. We see that this year has been the year of issuers, although there is pressure, the pressure is short term," he said.