JCI Friday Vulnerable To Weakening, Four Stocks Are Recommended

JAKARTA - The Composite Stock Price Index (JCI) is vulnerable to weakening in today's trading, Friday, July 25. Phintraco Sekuritas in its research estimates the JCI will move in the resistance range 7,600, pivot 7,500, and support 7,400.

Phintraco Sekuritas explained that the JCI closed up 0.83 percent to the level of 7,530.9 in trading last Thursday. The continued strengthening of the JCI, among others, was triggered by expectations of an increasing trade agreement.

"This is because the impact of the trade war will subside and the global economy will avoid recession," wrote Phintraco Sekuritas.

Phintraco Sekuritas added that ADB predicts Indonesia's economic growth of 5 percent this year and 5.1 percent in 2026, the same as previous projections. On the other hand, ADB reduced its projected economic growth in the Southeast Asia Region to 4.2 percent from its previous projection of 4.7 percent.

Mainly contributed by the decline in Thailand's economic projection (1.8 percent vs 2.8 percent), Malaysia (4.3 percent vs 4.9 percent), Vietnam (6.3 percent vs 6.6 percent) and the Philippines (5.6 percent vs 6 percent), "said Phintraco Sekuritas.

Technically, Phintraco Sekuritas said, the trend of increasing the JCI in the medium term is still quite strong. However, in the short term, the JCI is prone to pullback due to conditions in the overbought area.

"Today's JCI is estimated to potentially correct around the level of 7,450-7,500," explained Phintraco Sekuritas.

The increasing tension between Thailand and Cambodia is thought to have the potential to be one of the reasons for profit taking.

Phintraco Sekuritas said the tension between China and the European Union escalated as the 25th EU-China summit began on Thursday. The European Union called for concerns over the growing trade imbalance at the meeting.

Meanwhile, Phintraco Sekuritas stressed that the US delegation is scheduled to meet with the Chinese delegation in Stockholm, Sweden on July 28-29 for trade negotiations as well as broader topics, including China's purchase of Iranian and Russian crude oil.

The stocks recommended by Phintraco Sekuritas today include BRIS, BBRI, BMRI, and BBNI.