JCI Opens Strengthened After Vaccines Come, Analyst Recommends Kimia Farma Shares
JAKARTA - The Jakarta Composite Index (JCI) opened higher in trading earlier this week, Monday, December 7. JCI opened higher by 0.96 percent or 55.54 points to a level of 5,866.02.
Opening the trade, 123 stocks rose, 10 stocks fell, and 55 stocks were stagnant. Trading volume at the opening was recorded at 181.88 million shares with a transaction value of IDR181.70 billion.
JCI movement in today's trading is estimated to experience a technical rebound or a reversal towards strengthening towards the closest resistance target at the level of 5,870, after last weekend closed down 0.21 percent to 5,810 positions.
According to PT Reliance Sekuritas Indonesia Tbk (RELI) analyst, Lanjar Nafi Taulat Ibrahimsyah, technically, the JCI rate has confirmed a consolidated movement pattern testing the resistance level.
"Technically, the JCI is expected to move limitedly higher, with support-resistance at the level of 5,757-5,870," said Lanjar in his research.
Lanjar said the potential for a strong reversal in the JCI rate earlier this week could be utilized by investors by collecting shares of PT Erajayaya Swasembada (ERAA), PT Indofood CBP Sukses Makmur Tbk (ICBP), PT Indofood Sukses Makmur Tbk (INDF), PT Kalbe Farma Tbk. (KLBF), PT Sarana Menara Nusantara Tbk (TOWR) and PT Unilever Indonesia Tbk (UNVR).
However, PT Indosurya Bersinar Sekuritas analyst William Suryawijaya stated that the JCI movement has the potential to continue the downward process, which is influenced by negative sentiment related to fluctuations in the rupiah exchange rate against the US dollar and global commodity prices.
He added that the data on foreign exchange reserves (cadev) which will be announced by Bank Indonesia (BI) today will be a positive sentiment for the JCI movement, because the amount of cadev in November 2020 is estimated to be relatively stable. William said that currently JCI has a support-resistance range at the level of 5,711-5,852.
"The JCI movement pattern still seems to have the opportunity to experience consolidation, if the JCI cannot be maintained above the nearest resistance level, while fluctuations in the rupiah exchange rate and commodity prices will also color the movement of the JCI for the foreseeable future," William said.
Thus, he explained, the potential for further weakening of the JCI today could be responded to by investors by accumulating the purchase of shares of PT Unilever Indonesia Tbk (UNVR), PT Astra International Tbk (ASII), PT AKR Corporindo Tbk (AKRA), PT Mayora Indah Tbk. (MYOR), PT Kimia Farma Tbk (KAEF), and PT Bank Mandiri Tbk (BMRI).