The Fed Raises Interest Rates, JCI Predicted To Strengthen This Week

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (IHSG) is predicted to strengthen on Friday, July 29 trading. This is after the Fed decided to increase interest rates.

Yesterday, the JCI closed up 0.85 percent at 6,956.81. Throughout trading, the JCI moved in the range of 6,924 - 6,984.

Artha Sekuritas analyst Dennies Christopher Jordan in his research explained that the JCI closed higher after investors digested the results of the Fed's 75 bps interest rate policy.

"The Fed Governor considers this policy will not bring the economy into a recession. On the other hand, the movement is driven by the release of the performance report in the first semester of 2022," said Dennies.

He predicts the JCI will rise again. Technically, the candlestick formed a higher high and a higher low managed to breakout the MA50 indicating the potential to continue strengthening.

Investors will pay close attention to some of the newly released economic data, especially from the US. From within the country, the movement will be driven by the release season of the issuer's performance report as of the first semester of 2022.

Furthermore, Dennies estimates that the JCI will move at support levels of 6,894 and 6,925 and resistance at 6,985 and 7,014. The stocks that Dennies recommends for trading today are PT Summarecon Agung Tbk (SMRA), PT Media Nusantara Citra Tbk (MNCN), and PT Sarana Menara Nusantara Tbk (TOWR).