JCI has the potential to further decline to 7,300, see the recommendations for shares

JAKARTA - The Composite Stock Price Index (JCI) is expected to fall further to 7,350-7,400, in today's trading, Thursday, March 5, after yesterday closed 4.57 percent weaker to 7,577.

The JCI was pressured by negative sentiment from the increasing intensity of the war in the Middle East which made global investors tend to avoid risky assets.

Phintraco Sekuritas explained that technically, there was a widening of the negative MACD histogram and the Stochastic RSI indicator weakened near the oversold area. The JCI had weakened to the level of 7,486, approaching the level of 7,481 which was touched at the end of January 2026.

"So if the JCI is able to stay above the level of around 7,481, it has the potential to form a double bottom pattern. However, if the JCI continues to weaken, it is estimated that it will test the next support level at 7,350-7,400," wrote Phintraco Sekuritas in its research.

Furthermore, adding to the negative sentiment, it was reported that Fitch Ratings lowered Indonesia's outlook from stable to negative, although Indonesia's rating remained at the BBB level.

According to the report, this revision of the outlook reflects increasing policy uncertainty, as well as concerns about the consistency and credibility of policies amid centralized decision-making. The rupiah closed at a weakened level of Rp16,892 per US dollar on Wednesday.

Concerns about the impact of a prolonged war on inflation and the economy continue. Energy-related commodity prices continue to strengthen, raising concerns about the potential for rising inflation.

Goldman Sachs raised its forecast for crude oil prices on the grounds that there were significant disruptions to supplies from the Middle East and expectations of a decline in inventories due to the closure of the Strait of Hormuz.

Meanwhile, gold prices strengthened in Asian trading on Wednesday after previously weakening due to the strengthening of the US dollar.

Investors are reconsidering demand for gold as a safe-haven asset amid the escalating US-Iran conflict and a sharp strengthening of the US dollar.

Phintraco Sekuritas recommends five stocks for today, namely CLEO, DAAZ, DATA, BFIN and ULTJ.