JCI Has the Potential to Drop Again, Investors are Advised to Buy on Support in the Following Stocks

JAKARTA - The Composite Stock Price Index (SG) fell in trading on Wednesday, October 4. JCI fell 0.78 percent or 54.31 points to 6,886.58 at the end of trading.

Phintraco Sekuritas in its research said that the JCI tested the critical level of 6,850 on Wednesday, before finally closing at 6,886.58. With this weakening, the negative slope on the MACD widened and the Stochastic RSI was stuck in the oversold area.

Therefore, Phintraco Sekuritas predicts that the JCI will move within a support range of 6,790 and resistance of 6,810 in Thursday's trading.

"The unexpected risks that are currently looming over global financial markets as well as the hawkish statement by the Chairman of the Federal Reserve at the last FOMC are one of the factors that are considered to be triggering the wait and see attitude of market players at this time," explained Phintraco Sekuritas research.

Investors also shifted assets to safe haven instruments, thereby increasing the dollar index by 2.73 percent in the last month. The dollar index has continued its strengthening trend since mid-July 2023.

The strengthening of the dollar index had an impact on the weakening of the rupiah exchange rate. The rupiah exchange rate weakened 2.23 percent in the same period.

The above conditions are followed by a trend of net sell by foreign investors from the Indonesian capital market with accumulated net sell by foreign investors reaching IDR 4 trillion in the last month. As a result, investors in Indonesia are taking a wait and see step even though domestic economic data is relatively solid.

With the various sentiments that exist, market players should not be too aggressive and can pay attention to buy on support opportunities in shares of PT Telkom Indonesia Tbk (TLKM), PT Perusahaan Gas Negara Tbk (PGAS), PT Jasa Marga Tbk (JSMR), PT Midi Utama Indonesia Tbk (MIDI), and PT Tower Bersama Infrastructure Tbk (TBIG).