JCI Monday Projected To Continue Strengthening, Six Shares Could Be An Option

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) is projected to continue to strengthen this week. Phintraco Sekuritas in its research said the JCI Monday 19 May will move in the resistance range of 7,250, pivot 7,100, and support 7,000.

Some positive sentiment came from the global exchange. Phintraco Sekuritas explained that the main index on Wall Street closed significantly higher over the past week. This was driven by the easing of concerns over the escalation of trade wars that could have an impact on the weakening of the global economy, after reaching the United States (US) and China agreements to lower tariffs by 90 days.

Phintraco Sekuritas added that the index remained strong despite the May quartered Michigan Sentiment index dropping at the level of 50.8 from April 52.2 and below the 53.4.

"This is the second lowest level ever recorded, due to rising inflation expectations and new concerns over tariffs," wrote Phintraco Sekuritas.

Moody's lowered the US rating from AAA to AA1, for failing to reverse the deficit and the growing interest expense.

Technically weekly, Phintraco Sekuritas said, the JCI is still in a bullish continuation pattern, supported by continued indications of buying action, especially by foreign investors.

"Thus, the JCI this week is expected to test the resistance level of 7,250," said Phintraco Sekuritas.

This week, Phintraco Sekuritas added, trade negotiations will be focused, following US President Donald Trump's statement that the US would send letters to several trading partners.

In addition, the market will pay close attention to PMI data, where it is estimated that there will be a slightly smaller contraction in manufacturing in the Euro Area, Germany, France and the UK. The service sector is expected to improve slightly in the Euro Area.

In China, industrial production data and retail sales will be released in April. Domestically, RDG BI is expected to retain the BI rate at 5.75 percent

The stocks recommended by Phintraco Sekuritas today are SIDO, ICBP, TINS, PNLF, PTBA and NCKL.