JAKARTA - The Composite Stock Price Index (IHSG) is projected to remain weak in today's trading, Tuesday, October 29. Phintraco Sekuritas in its research estimates that IHSG will move in the resistance range of 7,700, pivot 7,630, and support 7,550.
Phintraco Sekuritas explained that today's IHSG validates a minor bearish reversal pattern if it breaks low at 7,630. Technically, the 7,630 level is right on the MA20 indicator which is the limit of the IHSG's medium-term trend.
"MACD confirmed a death cross along with Monday's weakening," wrote Phintraco Sekuritas.
Phintraco Sekuritas said that today's main laggards for IHSG are bank stocks, especially large-cap banks. The market seems to still be digesting or measuring the potential impact of the bankruptcy decision of one of the major issuers on the Indonesia Stock Exchange (IDX).
This, continued Phintraco Sekuritas, is because the issuer is recorded as having quite large long-term debts in several banks, including large-cap banks as of the June 2024 financial report.
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"This condition occurred ahead of the announcement of the major index review by MSCI on November 6, 2024," explained Phintraco Sekuritas.
From the external side, Phintraco Sekuritas added, the market tends to be cautious ahead of the release of consumer confidence data and new job openings in the US on Tuesday night. The data will have a significant impact on the market's view of the direction of the Fed's monetary policy for the remainder of 2024.
Phintraco Sekuritas recommends five stocks for today's trading, namely ARTO, ADMR, INKP, TINS and ERAA.
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