JCI Is Overshadowed By Profit Taking, Six Stocks Are Recommended

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) is overshadowed by profit-taking today Friday, October 31. Phintraco Sekuritas in its research estimates that the index will move in the resistance range 8,250, pivot 8,200, and support 8,050.

Phintraco Sekuritas explained that the JCI closed higher yesterday at the level of 8,184.06 (0.22 percent). Shares of the technology, energy and finance sector posted the largest strengthening. However, the rupiah weakened against the United States (US) dollar in the range of Rp. 16,636, in line with the weakening of other Asian currencies against the US dollar.

Meanwhile, continued Phintraco Sekuritas, the index on the Asian exchange was closed in various ways where the Kospi index hit a record high while the index on the Chinese and Hong Kong exchanges weakened yesterday.

"As expected, the Bank of Japan maintains its benchmark interest rate to remain at the level of 0.5 percent maintaining loan interest rates at the highest level since 2008," wrote Phintraco Sekuritas.

US President Donald Trump finally held a meeting with Chinese President Xi Jinping in Busan, South Korea on Thursday. The results of the meeting include the US reducing import rates related to the fentanyl drug trade to 10% from the previous 20 percent.

Thus, Phintraco Sekuritas said the total import rates imposed on China would be lowered to 47 percent from 57 percent. The US will also delay the implementation of the expansion of restrictions on Chinese companies blacklisted.

Meanwhile, China will delay restrictions on the export of rare earth minerals for a year. Furthermore, President Trump plans to visit China in April, followed by President Xi's visit to the US.

Technically, Phintraco Sekuritas explained, MACD's negative histogram narrowed slightly and Stochastic RSI formed the Golden Cross in the pivot area. JCI has the potential to test the 8250 level, but is prone to short-term pullback due to profit taking ahead of the weekend and testing MA20 at 8,153.

Untuk itu, JCI hari ini diperkirakan bergerak sideways pada kisaran 8,150-8,250 di perdagangan Jumat, jelas Phintraco Sekuritas.

Phintraco Sekuritas recommends six shares for today, namely PGAS, ITMG, INCO, TOWR, SCMA and EMTK.