Still Under Pressure, the JCI Tuesday Has the Potential to Correct

JAKARTA - The Composite Stock Price Index (JCI) is projected to correct in today's trading on Tuesday, May 5, after yesterday closed slightly stronger at 0.22 percent to 6,971.95.

MNC Sekuritas in its research said that the movement of the JCI yesterday was in line with the majority of Asian stock exchanges which also strengthened. As for the domestic, positive sentiment came from the release of relatively flat inflation data as well as the trade balance which still recorded a surplus.

However, the movement of the JCI was also overshadowed by pressure from certain stocks. One of them came from a significant correction in GOTO shares after the signing of a presidential regulation regarding applicators and drivers.

For today's trading, MNC Securities estimates that the JCI still has the potential to experience pressure.

"JCI is vulnerable to correction with support levels of 6,923 and resistance of 7,033," explained MNC Sekuritas in its research review.

More further explained, market participants will pay attention to a number of important sentiments, such as the release of Indonesian gross domestic product (GDP) data, geopolitical developments in the Middle East, as well as the movement of the rupiah exchange rate which is still depreciating against the US dollar.

For short-term trading, MNC Securities recommends a number of stocks that can be observed, including SRTG in the range of Rp1,865-Rp1,955, PTBA Rp3,020-Rp3,120, and SMGA in the area of Rp108-Rp113.