JCI Tuesday Projected to Move in the Range of 8,850-9,100, Watch the Stock Recommendations

JAKARTA - The Composite Stock Price Index (JCI) is predicted to consolidate in today's trading, Tuesday, January 27, after yesterday closed up 0.27 percent to 8,975.3.

Shares of the raw materials sector posted the largest strengthening, in line with the rise in commodity prices. However, the energy sector recorded the largest correction, due to weakness in BUMI, PTRO and DEWA shares, which were signaled as anticipating the announcement of the methodology for calculating free-float on shares in Indonesia by MSCI.

Phintraco Sekuritas in its research explained that technically, the Stochastic RSI indicator is in the oversold area but has not shown a reversal.

"However, there is a widening of the negative histogram in MACD. So it is estimated that the JCI will still consolidate in the range of 8,850-9,100," wrote Phintraco Sekuritas.

The rupiah in the spot market closed at a stronger level of Rp16,782 per US dollar on Monday, January 26. This strengthening of the rupiah was amid a weakening of the US dollar index ahead of the Fed meeting this week and the escalation of geopolitical tensions involving the US with several countries.

Gold prices rose to a new high near the $5,100 level per troy ounce due to increased demand for safe-haven amid rising political and trade uncertainties.

Asian stock market indices closed mixed on Monday due to still felt geopolitical tensions. Canada stated that it had no intention of pursuing a free trade agreement with China, after President Trump threatened to impose a 100% tariff on Canada if it signed a trade agreement with China.

Meanwhile, the Japanese Prime Minister signaled that he would take action against speculative trading that increases fluctuations.

The stocks recommended by Phintraco Sekuritas today include PGEO, ERAA, JSMR, AKRA and MEDC.