JCI Monday Prone To Correction, Check Out Stock Recommendations

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is predicted to be prone to correction to the level of 7,100 in today's trading, Monday 11 December.

Phintraco Sekuritas in his research said that the JCI is prone to support tests at the level of 7,100 with resistance at 7,200 and pivot at the level of 7,150. The JCI rally began to be limited, with the long upper shadow formed last Friday.

"The RSI stochastic indicates the formation of a death cross in the overbought area. Thus, the JCI is expected to be prone to corrections to support level 7,100," explained Phintraco Sekuritas.

Until the close of trading last Friday, the JCI recorded a level of IDR 7,159 or an increase of 0.35%. On a year-to-date basis, the JCI has increased by 4.51 percent.

Friday's trading closed with 228 stocks rising, 297 stocks weakening, and 240 stocks stagnant. Market capitalization was recorded at IDR 11,506.11 trillion.

The majority of sentiment that will affect the JCI on Monday comes from economic data that will be released. One of them is the US which will release data on the unemployment rate and inflation as of November 2023.

US latest economic data increases the Fed's chances of holding the benchmark interest rate at FOMC December 13, 2023. Following FOMC The Fed, ECB and BoE will also hold a meeting on Thursday, December 14.

ECB and BoE are expected to take the same steps, holding benchmark interest rates at 5.25 percent and 4.5 percent at the December 2023 meeting. From the region, China will release inflationary data which is estimated to be deflation by 0.1 percent for November 2023.

In addition, China will also release the China New Yuan Loans which is estimated to increase to 1,300 billion yuan in November 2023. Along with the JCI prediction, Phintraco Sekuritas recommends shares for Monday's trading, namely MAPI, MEDC, HRUM, ADMR, UNTR, ADRO, and CPIN.