JCI Has the Potential to Continue Strengthening, Driven by Internal Data

JCI (Photo: Doc. intermediate)

JAKARTA - The Composite Stock Price Index (IHSG) on Wednesday 3 January is predicted to have the potential to strengthen again and be influenced by internal and external movements.

Previously, the Composite Stock Price Index (IHSG) closed up 0.70 percent or 50.791 points to 7,323.59 at the end of trading on the Indonesian Stock Exchange (BEI), on Tuesday, January 2.

MNC Sekuritas analyst Herditya Wicaksana said that technically the JCI movement still has the opportunity to continue strengthening with support at 7,259 and resistance at 7,345 on Wednesday 3 January 2024.

According to Herditya, the JCI movement will be influenced by global stock exchange movements. "IHSG will be influenced by global stock exchange movements, where tomorrow there will be the release of United States (US) employment data," Herditya told VOI, Tuesday, January 2.

Meanwhile, Head of Research Phintraco Sekuritas Valdy Kurniawan said in his research that the JCI is still maintaining a bullish trend in line with the rebound on Tuesday 2 January. However, transaction volume has tended to decline since mid-December 2023. This condition was followed by an overbought signal on the Stochastic RSI today.

"Thus, technically the JCI is prone to entering a short-term consolidation phase. The JCI is expected to fluctuate again in the 7,250-7,300 range on Wednesday 3 January," he explained.

According to Valdy, the JCI was supported by two domestic data released Tuesday, January 2, namely an increase in the manufacturing index to 52.2 in December 2023 from 51.7 in November 2023 and a slowdown in the total inflation rate to 2.61 percent year on year (yoy) in December 2023, from 2.85 percent yoy in November 2023.

On the other hand, core inflation was relatively stable at 1.8 percent (yoy). This condition is an early indicator of solid public consumption until the end of 2023.

Meanwhile, externally, the German manufacturing index improved to 43.3 in December 2023, slightly better than forecast at 43.1. Then, China's manufacturing index previously also remained above the expansionary limit (50), to be precise at 50.8 in December 2023.

Meanwhile, the CEO of PT Yugen Bertumbuh Sekuritas, William Surya Wijaya, in his research said that he was still in the atmosphere of the new year, a new chapter at the start of the new year which was also supported by the release of inflation economic data which recorded quite good results.

Apart from that, the recorded capital inflow in the first week will also support the increase in the JCI for some time to come.

"While the JCI's movement pattern looks at home in a reasonable consolidation range with limited upside potential still visible, today the JCI has limited potential for strengthening," he said.

According to William, the JCI on trading Wednesday, January 3 2024 is estimated to be in the range 7,123 - 7,337.

Willam recommends AALI, SMGR, GGRM, ICBP, BMRI, TLKM, ASII and AKRA shares in trading on Wednesday 3 January.

Meanwhile, Valdy recommends stocks to pay attention to on Wednesday 3 January, such as PT Pertamina Geothermal Energy Tbk. (PGEO), PT Adaro Energy Indonesia Tbk. (ADRO). PT Barito Pacific Tbk. (BRPT), and PT ESSA Industries Indonesia Tbk. (ESSA)

Herditya said investors can pay close attention to Barito Pacific Tbk shares. (BRPT) with a price range of IDR 1,480 - IDR 1,565, PT Delta Dunia Makmur Tbk (DOID) with a price range of IDR 376 - IDR 400, and PT Ace Hardware Indonesia Tbk. (ACES) with a price range of IDR 750 - IDR 780.