JCI Wednesday Projected To Rebound, Nine Stocks Recommended

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) is projected to strengthen in today's trading, Wednesday, April 17, after weakening 1.68 percent or 122.07 points to 7,164.81 yesterday.

Phintraco Sekuritas in his research said that technically the JCI formed a candlestick pattern resembling a hazard in Tuesday's trading following the increase in Stochastic Relative Strength Index (RSI) from the oversold area.

"There is an opportunity for the JCI's continued rebound by closing the gap to around 7,200-7,240 on Wednesday. Some of the sentiments affecting the JCI movement include data on economic activity from China and Domestically," explained the research by Phintraco Sekuritas.

First, there is the realization of China's economic growth of 5.3 percent year on year (YoY). This is better than YoY's 5 percent estimate in the first quarter of 2024.

In addition, China Fixed Asset Investment year to date (YTD) is also above YoY's 4.5 percent expectations compared to the previous 4.3 percent YoY in March 2024. These data indicate better Chinese economic activity in the first quarter of 2024 from the fourth quarter of 2023.

Second, from within the country, the Consumer Confidence Index (IKK) lasted above 123 in March 2024. However, the market is still waiting for Indonesia's Trade Balance data in March 2024.

"Anticipation of the market is reflected in the weakening of the rupiah exchange rate to 2.08 percent to Rp16,170 per US dollar on Tuesday afternoon," explained Phintraco Sekuritas.

Based on the conditions above, according to Phintraco Sekuritas, mining stocks can be considered again. The reason is, these stocks tend to still benefit in the short term from the significant weakening of the rupiah exchange rate.

The stocks that can be considered include AKRA, INCO, TKIM, INKP, ADMR, ADRO and a number of infrastructure stocks, namely JSMR, EXCL, and ISAT.