JCI End Of Week Potentially Strengthens Due To Quick Count Results

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) has the potential to continue to strengthen the impact of the 2024 presidential election quick count results in today's trading, Friday, February 16.

The research team Phintraco Sekuritas said the JCI closed higher to the level of 7,303 on Thursday. According to him, today's rebound is indicated as a response from market players to the results of the rapid calculations while the elections carried out by a number of survey institutions.

As is known, pair number 02 Prabowo-Gibran excels in quick count results in various survey institutions with an average of above 50 percent.

"The potential for one-round executive elections seems to reduce concerns about the risk of uncertainty, at least in the short term," said the Phintraco Sekuritas research team.

As a result, the JCI is expected to continue strengthening this Friday with a resistance level in the area 7,330-7,350. The pivot level is 7,300 and the support level is 7,250-7,275.

From global market sentiment, investors anticipate the release of Producer Price Index (PPI) data which is estimated at 0.7 percent year-on-year (YoY) in January 2024, down from 1 percent YoY in December 2023.

The expectations of weakening producer inflation represent market optimism for producer inflation which is getting better and will gradually push Consumer Price Index to achieve the Fed's target of 2 percent.

Meanwhile, improving inflation will increase the Fed's probability to cut the benchmark interest rate in the May 2024 period. Currently, the Fed's interest rate is still being held at around 5.25-5.5 percent.

Meanwhile, from within the country, there was a release of retail sales data which was estimated at 2.6 percent YoY in December 2023 from the previous 2.1 percent in November 2023. This percentage shows market optimism for the sustainability of retail sales growth in Indonesia for seven consecutive months.

This is in line with expectations that there is an increase in consumer spending in the midst of the momentum of the 2024 General Election and the 2024 new year.

With a series of sentiments, Phintraco Sekuritas recommends selected stocks this Friday, including JPFA, CPIN, MNCN, JSMR, ESSA, and SMGR.