JCI Monday Tests Psychological Level at 7,000, Check its Stock Recommendations

JAKARTA - The Composite Stock Price Index (JCI) is projected to test the psychological level at 7,000 in this week's trading. Phintraco Sekuritas in its research estimates that the index will move in the range of resistance 7,200, pivot 7,100, and support 7,000.

Phintraco Sekuritas said Wall Street stock indexes closed lower on Friday, March 13, adding to the weekly weakness. The continued strengthening of crude oil prices became a negative sentiment, amid the US-Iran conflict which has shown no signs of ending soon.

"This raises concerns about the potential for stagflation," wrote Phintraco Sekuritas.

Phintraco Sekuritas added that Brent crude prices closed above the level of 100 US dollars per barrel for two consecutive days and WTI crude prices strengthened above the level of 98 US dollars per barrel. Meanwhile, gold prices weakened due to the strengthening of the US Dollar, concerns about inflation, and fading hopes for a rate cut.

Phintraco Sekuritas said that the development of the war in the Middle East and its impact on the energy market would still affect the movement of global stock indices and play a role in a series of monetary policy decisions from central banks.

Phintraco Sekuritas said the Fed is expected to keep its benchmark rate at 3.5-3.75 percent at this week's meeting. Global investors will also be looking at the Fed's latest economic projections.

"Investors will seek guidance on how the Fed views the risk of inflation amid the US-Iran conflict, as well as its implications for future monetary policy," Phintraco Sekuritas said.

From the domestic side, investors are eagerly awaiting what policies the government will take to deal with rising crude oil prices. President Prabowo Subianto stated that he is more likely to make savings and budget efficiency than to widen the state budget deficit.

President Prabowo emphasized that the government still faces problems of budget leakage and inefficiency, so it still has room to carry out efficiency. The BI RDG is expected to maintain the BI rate at 4.75 percent on Tuesday, March 17.

"Ahead of the long holiday, investors will tend to be wait and see. Technically, it is estimated that this week's JCI has the potential to test the psychological level of 7,000," explained Phintraco Sekuritas.

Phintraco Sekuritas recommends six stocks that have the potential to be profitable today, namely PTBA, JPFA, CPIN, ULTJ, LSIP and ADMR.