JCI End of Week Projected to Rise to 8,200-8,400, See Stock Recommendations

JAKARTA - The Composite Stock Price Index (JCI) is predicted to move in the range of 8,200-8,400 on today's trading, Friday, January 30, after yesterday closed down 1.06 percent to 8,232.2.

Phintraco Sekuritas in its research explained, following concerns about the potential downgrade of Indonesia to a frontier market by MSCI, some foreign securities also downgraded Indonesia, so that it triggered a sell-off and temporarily caused a 30-minute trading halt in the first trading session.

After reopening, the JCI had weakened deeper, but then there was bargain hunting so that the weakening of the JCI was reduced.

OJK decided that the Stock Exchange of Indonesia (IDX) would issue a revision to the minimum public share or free float limit rules from 7.5 percent to 15 percent in the near future. This free float provision will apply to both new and listed issuers.

If an issuer cannot meet this rule, an exit policy will be given, but it is not yet certain what exit policy will be applied. OJK stated that it would take a number of steps to follow up on the adjustments made by the IDX or KSEI.

The authority plans to provide Ultimate Beneficial Owner (UBO) data or data on the ultimate beneficial owner to MSCI, which will be focused first on the IDX100 constituents.

Phintraco Sekuritas revealed technically, after having broken through the MA200 level and weakened to the level of 7.481, the JCI experienced a technical rebound so that the weakening of the JCI was reduced and the JCI closed above the MA200 level.

However, the momentum of weakening is expected to still be dominant as shown by the MACD indicator.

"So it is estimated that if the JCI stays above the level of 8,000, it has the opportunity to move in the range of 8,200-8,400. However, if the JCI moves again to weaken and break through the level of 8,000, it is estimated that it will re-test the level of 7,770-7,600-7,500," wrote Phintraco Sekuritas.

Phintraco Sekuritas provides stock recommendations for today, namely BBCA, BBRI, BBNI, TLKM and ASII.