JCI Early Week Potentially Weakens Due To Global Sentiment, Six Shares Could Be Options

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) is predicted to weaken in today's trading, Monday, May 20. Phintraco Sekuritas in his research said that the JCI is expected to move in resistance today at 7,330, pivot 7,250, support 7,200.

Phintraco Sekuritas explained that the JCI movement earlier this week will reflect on the latest speech by the Head of the Fed, Jerome Powell on Monday morning. Furthermore, the market will respond to RDG BI's decision on the last day of trading this week, Wednesday, May 22.

"This week will be a short week because the trading day only lasts three days. Meanwhile in the US, a series of high-ranking speech from the Fed. This condition is expected to hold back the JCI this week," wrote Phintraco Sekuritas in his research.

Phintraco Sekuritas explained, the Dow Jones Industrial Average (DJIA) broke 40,000 for the first time on Friday 17 May. The S&P 500 and Nasdaq closed flat at the same time. However, Wall Street is still continuing its weekly strengthening rally in the past month.

The market is still supported by expectations of cutting the benchmark interest rate in September 2024. The market even sees a 14.8 percent chance of cutting 50 bps in September 2024 (CME FedWatch Tools)," explained Phintraco Sekuritas.

In Europe, Phintraco Sekuritas added, the Euro Area core inflation fell to 20 bps mom to 2.7 percent yoy, while total inflation remained at 2.4 percent yoy in April 2024. The ECB has not shown a change in interest rate cutting tendencies.

From the Asian region, Phintraco Sekuritas said, China recorded a diverse realization of macro data. House price index still weakened 3.1 percent yoy in April 2024, but industrial production grew 6.7 percent yoy and the unimployment rate fell to 5 percent in April 2024. These data are an indication that the recovery in economic activity will begin in April 2024.

Phintraco Sekuritas recommends six stocks that can be served today, namely ADMR, INDF, JSMR, ACES, NISP, and AVIA.