JCI Is Projected To Be Under Pressure At The Beginning Of The Week Despite Short-Term Rebound Opportunities

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) closed with a weakening of 0.90 percent or a decrease of 63.41 points to 6,970.74 on Friday, May 31. JCI earlier this week is also projected to fluctuate in the 6,900-7,000 level area.

Technically, Phintraco Sekuritas in its research saw that there was a negative scale widening in the Moving Average Convergence/Divergence (MACD) along with the formation of the Three Black Crows pattern on the JCI. According to him, this pattern needs to be watched out for because it indicates a potential bearish continuation.

"Meski demikian, dirinya menilai ada peluang rebound dalam jangka pendek. Dengan demikian, JCI berpotensi fluktuif di area level 6,900-7,000," jelas riset Phintraco Sekuritas.

Then, trading in early June was greeted with data releases from both global, regional, and domestic.

Globally, in the United States (US) there will be a release of Purchasing Managers' Index (PMI) Manufacturing data in May 2024. This data, according to Alrich, is quite wary of because PMI data in April is in the contraction zone at 49.2 or below level 50 which indicates weakening in the manufacturing sector in the US.

In contrast, in the UK there is also a release of PMI's S&P Manufacturing data which is expected to be in the expansion zone or at the level of 51.3 in May 2024. This is in line with optimism for a complete recovery in demand and improvement in manufacturing conditions.

In addition, the Hamburg Commercial Bank (HCOB) Manufacturing PMI in May in Germany and the European area showed expectations of increased levels of 45.4 and 47.4 in May 2024, respectively.

As for the region, there was a release of data from China's Caixin Manufacturing PMI in May 2024 which is expected to maintain its expansion level to 51.5 from the previous figure of 51.4 in April 2024. Meanwhile, the release of the National Bureau of Statistics (NBS) Manufacturing in May actually indicated a contraction in China's Manufacturing PMI at the level of 49.5 or below the consensus level of 50.5.

"The contraction is caused by a weakening of manufacturing production and a decrease in export value."

Meanwhile, from domestic, there was a release of year on year (YoY) Inflation data in May 2024 this Monday which is expected to slope to the level of 2.94 percent from the previous one at the level of 3.05 percent in April 2024. The expectation of this decline is in line with the end of the momentum of Ramadan and Eid al-Fitr and the decline in the prices of basic commodities.

The stocks recommended for today are BBCA, ACES, MAPA, SMRA, ASSA, and NCKL.