JCI On Monday Is Predicted To Strengthen Due To Positive Sentiment 'Flood'

JAKARTA - The Composite Stock Price Index (JCI) is predicted to strengthen in today's trading, Monday, July 1, in line with the flood of positive sentiment. Phintraco Sekuritas in his research estimates the JCI will move at 7,150 resistance, 7,100 pivot, support 7,000.

Phintraco Sekuritas added, the slowdown in the increase in the US Personal Core Expenditure (PCE) Price index to 2.6 percent yoy in May 2024 from 2.7 percent yoy in April 2024 keeps market expectations against cutting the Fed Rate at FOMC September 2024.

"The cutting opportunity is still above 50 percent (CME FedWatch Tools)," wrote Phintraco Sekuritas.

Phintraco Sekuritas added that this sentiment is positive, especially for developing countries that have experienced exchange rate pressure in recent times. Wall Street's indexes themselves are corrected in trading Friday, June 28. The above can be seen from the strengthening of more than 1 percent of the JCI on Friday which strengthened the JCI's position above the psychological level of 7,000.

"The potential for further strengthening to the resistance area of 7,130-7,150 is still open at the beginning of the week," added Phintraco Sekuritas.

However, Phintraco Sekuritas warned, be aware of the potential pullback ahead of the weekend along with the schedule for the Fed's Head, Jerome Powell on Wednesday, July 3. Powell is expected to confirm the Fed whose data is dependent in the speech.

Domestically, Phintraco Sekuritas said, the market anticipates inflation data which is expected to slope to 2.70 percent yoy in June 2024 from 2.84 percent yoy in May 2024. Inflation which is relatively stable at low levels provides space for BI for various efforts to stabilize the Rupiah exchange rate.

"This condition is expected to keep the Rupiah below Rp. 16,400 per US dollar," said Phintraco Sekuritas.

Phintraco Sekuritas recommends five stocks fit for today, including ADMR, ANTM, PTBA, UNVR, and CTRA.