JCI Friday is Predicted to Weaken Again, Check the Stock Recommendations

JAKARTA - The Composite Stock Price Index (JCI) is projected to weaken again in today's trading, Friday, April 23, after yesterday closed in the red zone alias plummeted 163 points or 2.16 percent to 7,378.60.

A total of 192 stocks rose, 505 stocks fell and 123 stocks were stagnant. The total volume of stock trading on the exchange today reached 53.55 billion shares with a total value of Rp. 20.19 trillion.

VP Equity Retail Kiwoom Sekuritas Oktavianus Audi said there were a number of sentiments that caused the JCI to close weaker yesterday. First, the outlook was downgraded to negative for Indonesian stocks by Fitch.

Second, the progress of the tough peace agreement between the United States (US) and Iran, so it tends to provide negative market speculation and push back the rise in crude oil prices.

Third, MSCI which is still freezing the rebalancing of Indonesian stocks, so that no constituents are included from domestic stocks. MSCI also excludes stocks that are included in the high shareholding concentration (HSC) list from the IDX. This also tends to provide a negative response in the market.

"Finally, the weakening of the rupiah against the US dollar at a time when the DXY index tends to slow down, so it sends a message that the weakening occurs due to domestic factors," he explained in a research.

Yesterday, the spot rupiah closed at Rp17,286 per US dollar, down 0.61 percent from the previous day's close. In line with this, based on the Bank Indonesia (BI) Jisdor, the rupiah also weakened 0.75 percent on a daily basis to Rp17,308 per US dollar.

Meanwhile, according to Head of Retail Research MNC Sekuritas Herditya Wicaksana, the JCI today will tend to weaken in the support level range of 7,245 and resistance 7,558.

"The MACD indicator shows a weakening trend in line with the RSI which is naturally declining, and is driven by transaction volume above the average of the last 20 days," he said.

Audi also recommends buying ELSA with support at Rp730 per share and resistance at Rp860 per share. A speculative buy recommendation is also pinned for MEDC with support at Rp1,680 per share and resistance at Rp1,840 per share.