Any Positive Sentiment From Strengthening Rupiah, Will The JCI Signal Strengthen?

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) closed up 0.50 percent, up 35.97 points to the level of 7,166.81 at the end of trading, yesterday, Thursday 18 April. JCI is predicted to strengthen again in today's trading, Friday 19 April, with support levels 7,130 and resistance at 7,200.

Phintraco Sekuritas in his research saw that the JCI managed to rebound to be seen in the technical indicator Moving Average Convergence/Divergence (MACD) which showed the narrowing of the negative slope on Thursday.

JCI received positive sentiment from two main factors. First, the strengthening of the rupiah exchange rate which reached the level of Rp. 16,000. And second, the 10-year tenor bond yield of the Indonesian Government which weakened -0.44% on Thursday afternoon.

The combination of strengthening the Rupiah exchange rate and decreasing bond yields cannot be separated from BI's intervention in Spot and Domestic Non Deliverable Forward (DNDF).

"This slowly directs the rupiah exchange rate back into the assumption of the state budget and strengthens the JCI," explained the research of Phintraco Sekuritas.

Globally, the market is waiting for the release of UK retail sales data for March. The data is projected to be strengthening to reach 0.70 percent compared to the previous month, which was at the level of -0.40 percent.

This change shows the potential for economic recovery in the UK. In addition, there are indications of an increase in consumer spending activity after a significant decrease in the previous period.

The recommended stocks include TLKM, EXCL, BMRI, BBRI, BBBNI, BBCA, and BRIS.