JCI May 2024 Is Predicted To Weaken Limited

JAKARTA - The Composite Stock Price Index (JCI) is predicted to weaken limited to today's trading, Friday, May 31, after yesterday's decline of 1.49 percent or 106.09 points to the level of 7,034.14.

JCI is predicted to have limited corrections with support at 6,984 and resistance at the level of 7,097 on weekends as well as closing in May.

Phintraco Sekuritas in its research saw the potential for a technical rebound on the JCI this Friday. This is based on the formation of a lower shadow pattern on the technical rebound in bluechip stocks, especially largely affiliated banks.

Furthermore, the weakening of the rupiah is due to external sentiment. First, the uncertainty in the direction of monetary policy of the Fed. Second, the increase in inflation in Germany by 2.4 percent year on year (YoY) in May 2024 which sparked concerns about the opportunity to cut the European Central Bank (ECB) benchmark interest rate.

Then the third is in the form of a positive revision to the outlook for China's economic growth by the IMF. This triggers capital outflows from other developing countries, including Indonesia.

Considering the three things above, Phintraco Sekuritas is wary of potential dead paint bounce on banking stocks.

"Don't be too aggressive this weekend, the JCI is still prone to psychological level tests which are also critical support levels of 7,000."

Finally, the expectation of a slowdown in economic growth in the US is a hope in reducing the rate of outflow. Because it is expected to be able to suppress the Fed to maintain the opportunity to cut the benchmark interest rate in September 2024.

Meanwhile, Phintraco Sekuritas recommends trading for short-term ADRO, PTBA, JPFA, CPIN, and SMRA shares for trading today, Friday, May 31.