Some Sentiments That Will Influence The JCI Movement Today

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is expected to be influenced by several sentiments, one of which is the release of trade balance data today, Tuesday 17 May.

CEO of Indosurya Bersinar Sekuritas William Surya Wijaya said that the release of trade balance data which is predicted to remain in a stable condition will provide sentiment to the index today.

In addition, the current pressure in the JCI movement seems to be influenced by sentiment from the movement of the rupiah exchange rate, so that market movement patterns still have the potential to move sideways in the short term.

However, as long as the support level can still be maintained firmly, then the price fluctuation momentum can still be used by investors to carry out daily trading," William wrote in his research.

Meanwhile, Artha Sekuritas analyst Dennies Christopher Jordan explained in his research that the JCI closed lower ahead of the 2022 Vesak Day holiday. According to him, the JCI closed slightly lower after fluctuating throughout Friday, May 13 last weekend.

"The movement is still overshadowed by fears of worse inflation while the Fed in the near future will raise interest rates to 50 basis points which makes the stock market less attractive," said Dennies in his research.

Dennis predicts JCI will strengthen in today's trading. Technically, the candlestick forms a doji indicating the weakness is starting to be limited so there is a potential for a rebound.

"In the medium term, the movement will still be in a strong bearish trend, so we need to be careful. The movement will be driven by dividend distribution and the release of issuer's performance as of the first quarter of 2022," said Dennies.