JCI Is Expected To Weaken On Wednesday As The Market Responds To The Speech Of The Fed Chair

JAKARTA - The Composite Stock Price Index (JCI) is predicted to weaken in today's trading, Wednesday, July 3. Phintraco Sekuritas in his research said that the JCI is expected to move in resistance today at 7,150, pivot 7,100, support 7,050.

"The JCI is expected to re-examine the pivot test at the level of 7,100. This condition continues its pullback trend in trading Tuesday after a resistance test area of 7,130-7,150 on Monday," wrote Phintraco Sekuritas in his research.

Phintraco Sekuritas added that today's movement is expected to be a form of responding to the market's speech by Fed Chairman Jerome Powell. Powell again emphasized the Fed's attitude with dependent data on the opportunity to cut the benchmark interest rate.

"In different places, a number of ECB officials also expressed concern about the inflation rate in the Euro Area after cutting the benchmark interest rate by the ECB," said Phintraco Sekuritas.

This attitude, continued Phintraco Sekuritas, triggered the weakening of the Rupiah exchange rate by 0.43 percent to Rp16,390 per US dollar on Tuesday afternoon. This condition is expected to suppress the JCI on Wednesday.

"It seems that BI's intervention in the context of stability of the Rupiah exchange rate still takes time before it can be reflected on strengthening the Rupiah exchange rate," explained Phintraco Sekuritas.

Phintraco Sekuritas recommends five stocks that can be considered for today, namely INTP, SMRA, ADMR, JSMR and INDF.