JCI Thursday Potentially Strengthens, What Stocks Are Recommended?

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is projected to strengthen again in trading, Thursday, September 21, after yesterday's increase of 0.45 percent or 31.36 points to the level of 7,011.68.

Phintraco Sekuritas in his research said the JCI formed a three white solvers pattern. JCI will move in the resistance range of 7,100, pivot 7,050, and support 7,000 on Thursday.

The JCI's strengthening potential is supported by the formation of a rising window in conjunction with Wednesday's gold cross-backed strengthening in MACD. One thing that is of current concern is the tendency to decrease transaction volume during the JCI rally on 19 -20 September 2023.

"The market is preparing for a potential speech by the Head of the Fed, Jerome Powell, who is more dovish than expected in the past month," explained research by Phintraco Sekuritas.

The reason is, market expectations for the Fed Rate's potential increase in the Federal Open Market Committee (FOMC) in November 2023 continue to decline. Another factor is the tendency to strengthen USD Index by 5 percent in the past month.

Domestically, the Board of Governors Meeting (RDG) of Bank Indonesia (BI) is believed to again maintain the benchmark interest rate at 5.75 percent.

The relatively stable inflationary condition in the limit of the 2023 State Revenue and Expenditure Budget (APBN) assumption is one of the factors that is believed to underlie the policy.

The market can observe opportunities for further strengthening of bank shares such as BBCA, BBNI, BBRI, BBTN. In addition, market participants can observe the shares of TLKM, UNVR, INDF, ADRO, CPIN, and AMRT.