JCI Tuesday Is Predicted To Weaken Due To External Sentiment, Five Stocks Are Recommended

JAKARTA - The Composite Stock Price Index (JCI) is predicted to weaken in today's trading Tuesday, May 20. Phintraco Sekuritas in his research said the JCI would move in the resistance range of 7,180, pivot 7,100, and support 7,080.

Phintraco Sekuritas explained that the JCI closed higher at the level of 7,141 (0.48 percent) in trading last Monday, after moving lower.

Negative sentiment from a decline in US debt rating by Moody's as well as a weakening of China's industrial production data and retail sales in April, which made Asian stock index tend to weaken.

"This also had time to encourage the JCI yesterday to be in negative territory before finally turning back stronger," wrote Phintraco Sekuritas.

Technically, Phintraco Sekuritas explained, the Stochastic indicator is in the overbought area, so today's JCI is estimated to have the potential for short-term corrections.

"Today's JCI will test the level at 7,080," added Phintraco Sekuritas.

Phintraco Sekuritas added that the market will pay close attention to the meetings of the Ministers of Finance and the Governor of the Central Bank of G7 countries on 20-22 May 2025 in Canada. Topics to be discussed at the meeting include the global economy, security and economic resilience, situation in Ukraine, financial crime and AI.

"This meeting is a preparation ahead of the G7 State Heads Summit which will be held on June 15-17, 2025 in Canada," said Phintraco Sekuritas.

From China, the market is looking forward to whether China's central bank will lower its loan benchmark interest rate by 1 year and 5 years, after six consecutive months.

It is estimated that the 1 year loan benchmark interest rate in May fell to 3% from April 3.1 percent. Meanwhile, the 5-year loan benchmark interest rate in May is estimated to fall to 3.5 percent from April 3.6 percent.

The stocks recommended by Phintraco Sekuritas today are CLEO, LSIP, ESSA, SSIA, and AUTO.