Mirae Asset Sekuritas Projects JCI to Reach 7,880 in 2023

Mirae Asset Senior Investment Information Martha Christina. (Photo: Doc. Antara)

JAKARTA - Mirae Asset Sekuritas projects that the Composite Stock Price Index (IHSG) will reach the level of 7,880 in 2023, or grow by around 15 percent year on year (YoY) compared to the final position in 2022 which was at the level of 6,851.

Throughout January 2023, the main domestic stock index is predicted to reach the level of 6,953 based on technical analysis.

"We predict JCI movement will be limited this month with JCI support-resistance in the range of 6,739-7,084", said Senior Investment Information Mirae Asset, Martha Christina, in Media Day: How to Read Market Direction at the Beginning of the Year in the SCBD area, Jakarta, quoted from Antara, Tuesday, January 10.

The limited movement of the JCI, according to him, was mainly driven by investors who were still waiting and seeing macroeconomic data.

In addition, investors will still pay attention to foreign net selling value, which was IDR 1.7 trillion in the first week of January 2023, following IDR 20 trillion throughout December 2022.

She said the challenges in 2023, among them, are the expected recession and the continuation of monetary tightening at the global level.

On the same occasion, Senior Investment Information Mirae Asset, Nafan Aji Gusta, said that the macroeconomic factor that investors are waiting for shortly is the decision on the Fed's benchmark interest rate in early February 2023.

He projects that the United States (US) central bank The Fed will raise its benchmark interest rate three times in 2023, with each increase of 25 basis points (bps).

"Currently, based on data compiled by CME and Bloomberg, the majority of global market players predict the Fed Funds Rate will be raised by 25 bps to 4.5-4.75 percent from the current position of 4.25-4.5 percent", said Nafan.

He also estimates that the BI-7 Day Reverse Repo Rate (BI7DRR) will be at the level of 6.0 percent in 2023.

The JCI closed at 6,851 at the end of December 2022, or decreased by minus 3.2 percent month to month (mtm), due to the fall in global markets amid the threat of recession, inflation, and tightening liquidity in 2023.