Minimal Positive Sentiment, Tuesday's JCI is Expected to Strengthen Limited

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (IHSG) strengthened 0.38 percent to a level of 6921.72 on trading Monday, August 28. Analysts estimate that the JCI has the potential to continue strengthening in today's trading, Tuesday, August 29.

Binaartha Sekuritas analyst Ivan Rosanova projects that the JCI will move in the 6,900-6,955 range today. According to him, the JCI is predicted to still tend to consolidate or a limited strengthening mode.

"Because there is still a lack of positive sentiment that can increase market players' buying interest," said Ivan.

The potential increase in the Fed Funds Rate (FFR) to reduce inflation to 2 percent has so far not had a negative impact on the JCI. So Ivan predicts there is still a possibility of an increase in the JCI this week.

Meanwhile, Phintraco Sekuritas said in their research that the JCI would still be consolidated. The main sentiment still comes from the signal of a 25 bps increase in the FFR at the FOMC in September 2023.

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The market responded positively to this condition because it was seen as providing certainty regarding the direction of The Fed's monetary policy.

"This increase is believed to be the last in a series of increases in the benchmark interest rate since mid-2022," explained research by Phintraco Sekuritas.

Domestically, Bank Indonesia (BI) held its benchmark interest rate at 5.75 percent last week. This condition indicates BI's optimism for the stability of domestic economic conditions.