Waiting For The January Effect, JCI Is Predicted To Only Touch 7,300 This Month

JCI illustration (Photo: dock. Antara)

JAKARTA - Market participants are predicted to be waiting (wait and see) for the January Effect momentum in early 2024. Where, this will encourage the strengthening of the Composite Stock Price Index (IHSG).

"The strengthening of the rupiah and the potential for lower interest rates in 2024 are the most widely referred to by market players as reasons for the JCI to strengthen," said Chairman of the Indonesian Stock Analyst Association (AAEI) David Sutyanto as CSA Index research quoted by Antara.

However, market participants project that the JCI will only touch 7,300 by the end of January 2024, or a slight increase compared to 7,272 at the close of December 29, 2023.

David said that market participants were not very optimistic in early 2024, because they were still waiting for further sentiment.

He explained that market participants are also looking forward to the results of the General Election (Pemilu) on February 14, 2024, before determining further investment steps.

Then, market participants are also looking forward to the direction and plan of expansion or capital expenditure (capex) of issuers in 2024.

"In addition, the potential for increasing geopolitical tension is also a concern for market players," said David in the CSA Index research.

CSA Index observed the sector that will be the main driver of the JCI in January 2024, including the financial sector being the main choice of the majority of market players.

"The supporting sentiment is the potential for lowering the benchmark interest rate and the positive performance of issuers in the financial sector," said David.

In addition, the energy sector is an option in line with the expectations of rising commodity prices, as a result of cutting crude oil production by the World Oil Exporting State Organization (OPEC) and the potential for increasing geopolitical tension.

Then, the technology sector is expected to strengthen along with the potential of this sector, as well as support for a decrease in the benchmark interest rate.