JCI Monday Projected To Continue Strengthening, What Stocks Can Be An Option?

JAKARTA - The Composite Stock Price Index (JCI) is predicted to continue strengthening in today's trading, Monday, February 5, after parking in the green zone at the end of last week.

Meanwhile, investors are waiting for Indonesia's economic data to be released next week. The Phintraco Sekuritas research team said the JCI is expected to move in the range of 7,175-7,330 this week.

Sentiments affecting the JCI will be dominated from within the country, the Central Statistics Agency (BPS) is scheduled to release data on Indonesia's economic growth in the fourth quarter of 2023 this Monday.

"Economic growth is estimated to return to above 5 percent year-on-year (yoy) in the fourth quarter of 2023, so full year 2023 economic growth is believed to be above 5 percent," wrote Phintraco Sekuritas in his research.

As a result, in early trading week, the JCI resistance level is predicted at 7,330, while the pivot level is 7,250 and the support level is 7,175. Meanwhile, at the close of trading on Friday the JCI rose 0.52 percent to the level of 7,238.78.

Meanwhile, from external sentiment, investors anticipate the release of PMI ISM Services data in the US on Monday which is estimated at level 52 from the previous 55.2 in December 2023. The high projected PMI indicates that there is still confidence in the expansion of the US services sector' economy amid uncertainty in economic and geopolitical conditions.

In addition, investors are also waiting for the release of the Caixin Composite PMI and Caixin Services PMI data which will be released on the same day.

Throughout February 2024, the Dow Jones Industrial Average (DJIA) and S&P 500 recorded the highest closing records on Friday. The strengthening was supported by the realization of the performance of a number of major technology companies in the US in the fourth quarter of 2023 that were above expectations. Meanwhile, non-farm payroll (NFP) data shows that entrepreneurs in the US added 353,000 jobs in January 2024, beating economist estimates by 185,000 jobs.

"US PMI Manufacturing ISM rose to 49.1 in January 2024 from 47.1 in December 2023. This condition reduces the chance of cutting the Fed rate in March 2024," he concluded.

Meanwhile, at the Federal Open Market Committee (FOMC) meeting on Thursday, January 31, United States time, the Fed decided to maintain the benchmark interest rate at the level of 5.25-5.5 percent. As a result, with a series of sentiments, Phintraco Sekuritas recommended several shares for Monday, including TKIM, JPFA, UNVR, BIRD, KLBF, and ISAT.