JCI Predicted To Continue Weakening, HMSP, PTPP, And TLKM Are Recommended By Analysts

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is predicted to continue its weakening trend in today's trading, Tuesday, June 7 after parking at 7,096.58 yesterday, or down 1.2 percent.

Yesterday JCI moved in the range of 7,056.17 - 7,194.53. Noted, 234 stocks rose, 301 stocks weakened and 161 stocks moved in place. Foreign investors recorded a net foreign buy action of IDR 290.91 billion.

Foreign investors recorded buying shares of PT Bank Mandiri (Persero) Tbk (BMRI) amounting to IDR 288.6 billion, or the most in yesterday's trading. Following behind are PT Astra International Tbk (ASII) worth IDR 136.6 billion and PT Vale Indonesia Tbk (INCO) for IDR 55.7 billion.

Artha Sekuritas analyst Dennies Christopher Jordan explained that the JCI closed lower throughout the trading day because investors were still anticipating an increase in the Fed's interest rate of up to 50 bps in the near future.

"Sentiment about the performance of issuers in the first quarter of 2022 is still overshadowing but unable to sustain it," said Dennies in the research.

Dennis predicts the JCI will weaken in today's trading. Technically, the candlestick formed a long black body testing the strong support for MA50 indicating the weakening trend will still continue but is quite limited.

In addition, the movement will still be supported by the release of the issuer's performance in the first quarter of 2022 and the distribution of dividends. Dennies estimates that the JCI will move at support levels of 6,977 and 7,036 and resistance at 7,174 and 7,253.

The stocks that Dennies recommends for trading today are PT HM Sampoerna Tbk (HMSP), PT PP Tbk (PTPP), and PT Telkom Indonesia Tbk (TLKM).