JCI Monday Prone To Correction, These Are The Recommended Rows Of Shares

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) is prone to correction to the range of 6,900-6,930 in trading 4-8 September 2023, after last weekend the stock index closed higher to 6,977,654.

Head of Research Phintraco Sekuritas Valdy Kurniawan said that the potential pullback occurred along with the indications from Stochastic RSI which formed a death cross in the overbought area.

"JCI has the potential to pull back to 6900 6930 next week. This is indicated by the Stochastic RSI which forms a death cross in the overbought area," he explained in daily research.

Meanwhile, Valdy predicts that the JCI movement next week will be overshadowed by various sentiments, both from within the country and abroad. Domestically, the JCI is expected to still be influenced by Indonesia's inflationary data in August 2023 released by the Central Statistics Agency (BPS) on Friday, September 1.

As is known, Indonesia's inflation or the Consumer Price Index (JCI) is at 3.72 percent in August 2023 on an annual basis. This achievement is higher than the Bloomberg consensus which consists of 27 economists, who predict that inflation in August 2023 will increase with an average middle value of 3.4 percent (year-on-year/YoY).

In addition, market participants will also look forward to the release of foreign exchange reserves data on Thursday 7 September and the August 2023 Consumer Confidence Index on Friday 8 September.

Shifting to the Asian region, the JCI movement will be shrouded in the influence of the release of China's export and import trade balance data on Thursday 7 September. Chinese exports and imports are predicted to contract to 9.8 percent (YoY) and 8.8 percent (YoY).

Furthermore, Phintraco Sekuritas suggested that market participants be able to pay close attention to the potential of mining issuers such as ELSA, ADRO, ITMG, and PTBA shares.

Not only that, the market can also pay attention to stocks that have the potential to experience a further rebound next week, such as MAPI, JPFA, ACES, and ICBP.