Wednesday's JCI Is Predicted To Strengthen Along With These Sentiments

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Jakarta Composite Index is projected to strengthen in today's trading, Wednesday, January 18, after rising 1.19 percent or 79.28 points yesterday to a level of 6,767.34.

Phintraco Sekuritas, in his research, said that the JCI has the potential to test the resistance of 6,800 on Wednesday.

"This is in line with the widening of the MACD positive slope after the golden cross accompanied by the Stochastic RSI which tends to move up from the oversold area," explained the research.

Externally, China's GDP growth was 2.9 percent YoY in the fourth quarter of 2022, higher than the forecast of 1.8 percent YoY. Meanwhile, China's retail sales fell by 1.8% YoY in December 2022.

"This rate is much better than the estimated decline of 8.6 percent YoY. However, the majority of regional indices recorded a weakening on Tuesday," said research by Phintraco Sekuritas.

On another sentiment, the Fed is expected to raise its benchmark interest rate by 25 bps in February 2023. On the other hand, Bank Indonesia (BI) is expected to raise its benchmark interest rate by 25 bps at the Board of Governors' Meeting (RDG) on 19 January 2023.

This prediction has the potential to trigger a rebound in rate-sensitive stocks, especially banks ahead of the BI RDG.

"Therefore, bank stocks with potential for further strengthening can be watched, such as BBNI, BBRI, BMRI, BBCA, and BRIS. Apart from banking stocks, pay attention to ELSA, INDF, and MAPI on Wednesday," wrote Phintraco Sekuritas.