JCI Has The Potential To Strengthen This Weekend, Check Out The Stocks Recommended By Analysts

JAKARTA - The Composite Stock Price Index (JCI) is predicted to strengthen to 7,250 in today's trading, Friday, January 26.

The Phintraco Sekuritas Research Team said the JCI would continue consolidation in the range of 7,150 to 7,250 after trading in the previous session, the JCI actually tested the psychological level of 7,200.

"The RSI stochastic moves down with death cross validation on MACD. However, transaction volume is down again. Thus, there is no validation of small bearish reversal and the JCI is estimated to be still sideways in the range of 7,200, today," said the Phintraco Analyst Team.

JCI closed down 0.69% or 49 points to the level of 7,178 on Thursday, January 25. Throughout trading, the index moved at the level of 7,176 to 7,253 after opening at the level of 7,227 this morning.

A total of 15.06 billion shares circulated with a transaction value of Rp9.53 trillion. Transactions occurred 1.02 times. The index was reduced by 258 shares, 248 stocks were stagnant and only 260 shares were green. Market capitalization was recorded at Rp11,457.46 trillion.

JCI posted a decrease of 1.30 percent year to date. This condition was influenced by the continued weakening of the Rupiah exchange rate to Rp15,820 per US dollar, down 0.73% on Thursday afternoon.

This weakening is in line with changes in market views on the Fed's opportunity to cut the Fed's interest rate in March 2023. The market returned to its belief at the end of last year where the Fed's first reference interest rate cut is expected to occur as early as May 1, 2024.

However, energy stocks and basic materials showed movement following PBOC's decision to allow banks to store smaller reserves starting February 5, 2024. Along with the JCI prediction, the Phitraco Sekuritas Research Team recommended several interesting stocks to be observed, namely, PTBA, ITMG, PGAS, MEDC and ELSA.