Rupiah Becomes The Weighting Of The JCI Thursday

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) is projected to weaken in today's trading, Thursday, June 20, after yesterday's decline of 0.12 percent or 7.91 points to 6,726.92.

Phintraco Sekuritas in his research predicts the JCI has the opportunity to test 6,700 when the rupiah is still a weight on Thursday. JCI today is estimated to move at 6,800 resistance, 6,750 pivot, 6,700 support.

"The condition of the Rupiah exchange rate is still a burden on the JCI today to get out of the selling pressure. The JCI today still has the opportunity to test 6,700 with the next critical support level at 6,650," wrote Phintraco Sekuritas.

Phintraco Sekuritas explained that a number of positive sentiments have not been able to trigger a reversal in the direction of the JCI. The first is the opportunity to cut the Fed's benchmark interest rate in September 2024 (CME FedWatch Tools), speculation of cutting the BoE benchmark interest rate in the near future and an increase in Indonesia's export value by 2.86 percent yoy in May 2024.

Phintraco Sekuritas said that a number of domestic issues, especially related to the Rupiah exchange rate, suppressed the JCI. The first is the concern regarding the increase in the budget deficit in the 2024 State Budget in line with the current weakening of the Rupiah exchange rate and a number of priority programs in 2024. The second is the discourse on increasing people's cooking oil prices (Minya Kita) as one of the impacts of weakening the Rupiah exchange rate.

"The second factor has the potential to trigger an increase in inflation which could have an impact on weakening the pace of economic growth in the second semester of 2024," added Phintraco Sekuritas.

Meanwhile, Phintraco Sekuritas recommends stocks that have the potential to pay today, namely TLKM, INCO, ELSA, INTP and ACES.