IHSG Ready to Continue Strengthening, Six Stocks Could Be Options

JAKARTA - The Composite Stock Price Index (IHSG) is predicted to continue strengthening today, Monday, October 14. Phintraco Sekuritas in its research estimates that the IHSG will move in the resistance range of 7,600, pivot 7,550, support 7,500.

Phintraco Sekuritas explained that Wall Street indexes strengthened significantly on Friday, October 11. The S&P 500 recorded a level of 5,800 for the first time in history. This strengthening was supported by better-than-expected financial performance in the third quarter of 2024 from a number of large companies, including JPMorgan Chase and Wells Fargo.

"In addition, the market is also responding to the downward trend in inflation from the decline in the Producer Price Index to 1.8 percent yoy in September 2024 from 1.9 percent yoy in August 2024. Regarding this condition, the CME FedWatch Tools recorded a 90 percent chance of a 25 bps cut in the November 2024 FOMC," said Phintraco Sekuritas.

According to Phintraco Sekuritas, the JCI maintained its position above the psychological level of 7,500 last Friday. In line with this movement, the narrowing of the negative slope on the MACD continues. Thus, today's JCI has the opportunity to continue its technical rebound to the range of 7,550-7,580.

"However, the development of a number of external sentiments will affect the movement of the JCI for the rest of this week," said Phintraco Sekuritas.

Phintraco Sekuritas added that the market is focused on the Chinese Ministry of Finance's press conference regarding fiscal policy and economic growth in China on Saturday, October 12.

Meanwhile, from within the country, Phintraco Sekuritas said that Indonesia's Trade Balance is estimated to have a surplus of 3.1 billion US dollars in September 2024 which was released on Tuesday, October 15.

"Then the market is also waiting for the Bank Indonesia (BI) RDG meeting regarding the determination of interest rates and credit growth in Indonesia on Wednesday, October 16," explained Phintraco Sekuritas.

Phintraco Sekuritas recommends six stocks for today, namely INTP, SMGR, PWON, ARTO, PGAS, and HRUM.