JCI At The Beginning Of The Correcting Week To Level 7,225-7,300, Five Shares Could Be An Option

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) is projected to be prone to correction in today's trading, Monday, July 21, after closing up 24.89 points last weekend or 0.34 percent to the level of 7,311.91.

Phintraco Sekuritas, in his research, said that the strengthening of the JCI was affected by market euphoria against several positive sentiments this week. For example, the news of negotiations on the import rate of Indonesian products to the United States (US) has succeeded in reducing the tariff from 32 percent to 19 percent.

Shortly from the news, Bank Indonesia (BI) in a board of governors meeting (RDG) last Wednesday also decided to again cut the benchmark interest rate from 5.5 percent to 5.25 percent. Technically, the MACD indicator still shows a positive slope widening which indicates that interest in buying is still ongoing.

"On the other hand, the stochastic RSI shows an overbought that is prone to corrections in the short term so that the JCI is estimated to have the potential for pullback (temporary corrections) in the range of 7,225-7,300 this week," explained Phintraco Sekuritas.

Furthermore, JCI is expected to be prone to correction to support level 7,240 and resistance 7,382. The sentiment is that investors will pay close attention to the release of Japanese inflation data which will return to the level of 3.3 percent on an annual basis (YoY) in June 2025 from 3.5 percent YoY in the previous month.

Japan's inflation rate in June is the lowest since December 2024 due to a decline in the energy sector. Japan's Core Inflation rate also said he was still experiencing a decline to the level of 3.3 percent YoY in June from the previous level of 3.7 percent.

"This data is in accordance with consensus but is still far from the BoJ (Bank of Japan) target which is at the level of 2 percent," explained Phintraco Sekuritas.

Investors will also pay close attention to the results of the release of German producer price index data which fell to the level of 1.3 percent YoY from 1.2 percent YoY which reflected the weakening of German production costs.

As for America, investors are still waiting for the initial release of building permit (preliminary building permit) which is projected to weaken to the level of 1.39 million units from the level of 1.39 million units. This thin correction is a signal of weakening the US property sector or investor caution and developers.

On the other hand, there is data on US startings or construction of houses that actually start, not limited to permits, which is predicted to increase to a level of 1.30 million units in June from 1.24 million units in May.

The stocks that are the choice of Phintraco Sekuritas fell to the shares of PT Blue Bird Tbk (BIRD), PT Perusahaan Gas Negara Tbk (PGAS), PT Ultra Jaya Milk Industry & Trading Company Tbk (ULTJ), PT DCI Indonesia Tbk (DATA), and PT Darma Henwa Tbk (DEWA).