JCI Weekend Projected To Continue Weakening, Five Stocks Recommended

JAKARTA - The Composite Stock Price Index (JCI) is projected to fall again in today's trading, Friday 7 February. Phintraco Sekuritas in his research said the JCI would still be stuck below the psychological level of 7,000.

Phintraco Sekuritas said that the JCI weakened significantly yesterday (2.21 percent) when sentiment in trade wars tended to improve. JCI broke through the support critical level of 6,950.

"Technically, the weakening is the initial validation of the rectangle as an indication of bearish continuation," wrote Phintraco Sekuritas.

Phintraco Sekuritas added that United States (US) President Donald Trump reportedly ordered finance minister Scott Bessent to reduce 10-Year Bond Yield in the US without the need to cut the Fed's benchmark interest rate. This sparked fears of tightening liquidity in the US.

"For Indonesia, in addition to tightening liquidity, this condition has the potential to trigger rotation into long-term bonds, especially Indonesian government bonds because it has the potential to offer more attractive returns when compared to US bonds," added Phintraco Sekuritas.

Phintraco Sekuritas said that the development of the news or rumors above needs to be observed in future developments. Realization of this will have a negative impact on the stock market in Indonesia.

Thus, Phintraco Sekuritas predicts that today's JCI is feared that it will still move below the psychological level of 7,000.

"Weakening may begin to be limited, given the formation of a long lower-shadow and indications of oversold on the Stochastic RSI," he explained.

The stocks recommended by Phintraco Sekuritas today are ANTM, INCO, TINS, PNBN, and TLKM.