Weekend Stock Recommendations Amid JCI Movement Consolidation

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) closed up 8.14 points or 0.11 percent to the level of 7,681 at the end of trading yesterday, Thursday, September 5. In his research, Phintraco Sekuritas said that technically, the JCI again failed to penetrate the strong resistance at the level of 7,700 validated with the formation of an upper shadow indicating selling pressure.

In addition, the MACD indicator shows a histogram moving sideways. Therefore, Phintraco Sekuritas estimates that the JCI will experience consolidation in the area range of 7,650-7,700 in today's trading, Friday 6 September.

Sentiment from global, the focus of the market will be on the United States which is scheduled to release Non-Farm Payrolls (NFP) data and unemployment rates this Friday.

It is estimated that NFP data will grow from 114 thousand to 120 thousand in August. In addition, the unemployment rate is expected to remain stable at the level of 4.30 percent.

"The increase in NFP data is believed not to change expectations regarding the cut in interest rates that will occur in September," explained Phintraco Sekuritas.

Then, market attention will also be focused on the third estimate of Gross Domestic Product (GDP) or Gross Domestic Product (GDP) for the second quarter of the Euro region, which is expected to grow limited to 0.60 percent YoY from 0.50 percent YoY in the previous quarter.

In addition, on the same day, Germany will also release trade balance data for July, which is expected to grow to 21.90 billion euros from 20.40 billion euros a month earlier. This limited growth is expected due to improvements in export performance, which is also expected to grow by 1.20 percent from the previous level of -3.40 percent.

From the domestic side, the market is looking forward to releasing foreign exchange reserves data for August. For information, foreign exchange reserves in July amounted to 145.40 billion US dollars, equivalent to financing around 6.5 months of imports or 6.3 months of imports and government foreign debt payments, far exceeding the international adequacy standard of about 3 months of imports.

The stocks recommended by Phintraco Sekuritas include PT Astra Agro Lestari Tbk (AALI), PT Perusahaan Perkebunan London Sumatra Indonesia Tbk (LSIP), PT XL Axiata Tb (EXCL), PT Mitra Adiperkasa Tbk (MAPI) and PT BFI Finance Indonesia Tbk (BFIN).