From Domestic Lack Of Driving Sentiment, JCI Friday Potentially Weakens

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) has the potential to weaken in trading Friday, July 1, after yesterday's decline of 0.44 percent or 30.77 points so that it parked at the level of 6,911.58.

Artha Sekuritas analyst Dennies Christopher said the JCI closed lower yesterday in line with the weakening global stock market, which is quite worried that the Fed will raise interest rates again to 75 bps in July 2022.

Meanwhile, Dennis said that domestic sentiment is still minimal. As for tomorrow's trading, Dennis predicts the JCI will continue to weaken.

He explained technically that the JCI candlestick formed a lower high and a lower low, with the stochastic widening after forming a deadcross indicating potential weakness.

"The weakening is expected to be limited, as seen from the stochastic which has entered the oversold area. Investors will pay close attention to the release of Indonesia's inflation data," said Dennies in his research.

For today's trading, Artha Sekuritas estimates that JCI will move with support at 6,875 and 6,839 and resistance at 6,968 and 7,025.

The recommended stocks include PT Mitra Keluarga Karyasehat Tbk (MIKA), PT Sawit Sumbermas Sarana Tbk (SSMS), and PT Barito Pacific Tbk (BRPT).