JCI At The Beginning Of The Week Has Limited Chance Of Strengthening, This Is The Driving Force

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is considered to still have a limited chance of strengthening, after last weekend closed at the level of 7,084.65, up 27.30 points or 0.39 percent.

B-Trade Fundamental Analyst Raditya Krisna Pradana sees the release of Indonesia's economic growth data as a positive catalyst for the market, amid global macroeconomic uncertainty and high inflation.

However, Raditya is wary of the JCI's current position which is prone to being at the end of the upward phase and has the opportunity to start correction to the 6,600 - 6,650 area.

"After this correction is complete, we project that the JCI will return to form a new high," said Raditya in his research.

He analyzed that the JCI next week has the potential to strengthen to a limited level of 7,140. Market participants are asked to be vigilant if the JCI closes below 6,949 because it could be dragged into a deeper decline.

Research Analyst Reliance Sekuritas Lukman Hakim added that the sentiment of Indonesia's Gross Domestic Product (GDP) growth, which was above consensus, would be a boost for the JCI. This can make the confidence of foreign investors increasingly flowing.

Therefore, next week investors can pay attention to stocks with large foreign purchases, such as BBCA and TLKM. Lukman advocates the banking, technology, and telecommunications sectors.