JCI This Week Is Still Overshadowed By Middle East Conflict, What Stocks Can Be A Choice?

JAKARTA - The Composite Stock Price Index (JCI) continues to weaken amid conflicts in the Middle East to the drop in rupiah to the level of Rp. 16,200.

At the close of trading on Friday, April 19, the JCI experienced a correction of 1.17 percent or 79.49 points to the level of 7,083. Over the past week, foreign investors also drained their portfolio by recording a net selling value of IDR 838.17 billion.

In addition, the Indonesia Stock Exchange (IDX) also reported that the JCI market capitalization decreased 1.42 percent to Rp11,718 trillion during the period April 16 to April 19, 2024.

The Phintraco Sekuritas Research Team stated, technically, downside opportunities are still open in the range of 7,035 or in MA200 this week, Monday 22 April. This is in line with the death cross on Stochastic RSI and the widening of the negative slope MACD.

From the regional side, at the beginning of next week there will be a loan prime rate of 1 and 5 years in China. In March 2024, China's central bank (PBOC) maintained a benchmark loan interest rate of 3.45 percent for one year and 3.95 percent for 5 years.

"The two interest rates are still at record lows in line with PBOC's goal of trying to spur economic growth from the property crisis and low consumer confidence," Phintraco wrote in research.

At the same time, China will release direct foreign investment data (FDI) in March 2024. FDI China is known to have experienced a significant weakening since June 2023 and has been at its lowest level for the past 30 years.

The release of FDI China data is expected to improve in line with China's GDP growth which is above consensus expectations in the first quarter of 2024, namely 5.3 percent year-on-year (YoY). From the domestic side, Phintraco Sekuritas said there was a release of balance of trade data at the beginning of next week which is expected to increase slightly in line with the increase in commodity export performance.

"Balance of trade in February 2024 decreased sharply to 0.87 billion US dollars, which is far below the consensus estimate of 2.32 billion US dollars. Export contractions are expected to recover in line with China's improving economic rate in the first quarter of 2024," explained research. Phintraco Sekuritas.

The Phintraco Sekuritas Research Team also recommended investors to pay close attention to MDKA, ANTM, INCO, ELSA, JSMR, and SIDO shares earlier this week.