JCI and Rupiah are Predicted to Reverse Direction in Early 2024, Here are the Stock Recommendations

JAKARTA - The Indonesian Stock Exchange (BEI) will reopen trading in the Composite Stock Price Index (IHSG) on Tuesday, January 2, 2024. The JCI is also predicted to have the potential to strengthen in early trading in 2024.

For information, the JCI fell 0.43 percent or 31.09 points to 7,272.8 until the end of trading Friday 29 December 2023. Meanwhile throughout 2023, the JCI was recorded to have strengthened 6.16 percent.

Phintraco Sekuritas Head of Research Valdy Kurniawan said that the sentiment for the JCI movement at the beginning of 2024 again came from expectations that the Fed would lower its benchmark interest rate in the first quarter of 2024.

Valdy said the CME Fedwatch Tool shows the probability of cutting the Fed Rate at 71.4 percent at the FOMC in March 2024.

"This also triggered a strengthening of the rupiah exchange rate by 0.13 percent to a level of IDR 15,395 per US dollar on Friday 29 December 2023," in his research quoted on Tuesday 2 January 2024.

Valdy said that in the meantime, sentiment from within the country comes from expectations of more positive economic growth in the political year 2024. So, it is hoped that this will provide an opportunity for the January Effect in 2024.

"For your information, the probability of strengthening the IHSG every January from 2000-2023 is 58 percent," he said.

Valdy projects that the JCI will move at the support level of 7,250 and resistance 7,350, with a pivot at 7,300 on Tuesday, January 2, 2024.

Meanwhile, CEO of PT Yugen Bertumbuh Sekuritas, William Surya Wijaya, in his research, said that the IHSG is starting 2024 with new enthusiasm and starting to enter the political year, which still seems to be full of new optimism.

Apart from that, today's release of economic data on the inflation rate is allegedly still in a controlled condition, which will provide color to the JCI movement pattern.

"This will be one of the sentiments that can push the JCI to rise again for some time to come," he said.

William estimates that the JCI has the potential to strengthen on trading Tuesday, January 2 2024 in the range 7,123 - 7,337.

According to Valdy, the top stock picks in trading on Tuesday, January 2 were BRIS, JSMR, PANI, ADMR, AKRA and EXCL.

Meanwhile, Willam recommends ITMG, JSMR, SMGR, BBNI, INDF, ASII, AKRA and CTRA shares in trading on Tuesday, January 2.