JCI Early Week Projected to Weaken, Check its Stock Recommendations

Illustration. (Photo: Dok. Antara)

JAKARTA - The Composite Stock Price Index (JCI) is projected to weaken in today's trading, Monday, December 22, after fluctuating throughout the last week and closed down 0.10 percent to 8,609.55.

Kiwoom Sekuritas Indonesia in its research assessed the movement of the JCI was influenced by the weakening of the rupiah exchange rate which approached the level of Rp16,730 per US dollar amid the strengthening of the US dollar index. In addition, the market also responded to the decision of Bank Indonesia to hold the benchmark interest rate at the level of 4.75 percent as an effort to maintain exchange rate stability.

For Monday's trading, Kiwoom Sekuritas projects the JCI to move mixed with a weakening trend. Technically, the JCI is expected to move in the support range of 8,500 and resistance 8,690, with the MACD indicator showing a weakening trend.

"Ahead of the year-end holiday period, transaction activity is expected to decline so that external sentiment will be more dominant in influencing index movements," explained Kiwoom Securities.

From the outside, market participants are paying attention to the announcement of US President Donald Trump regarding the candidate for Chairman of The Fed. According to Audi, this has the potential to affect the direction of global monetary policy, especially the Fed's dot plot expectations which could become more dovish.

In addition, the increase in the price of safe haven assets such as gold to the level of 4.342 US dollars per troy ounce and the strengthening of silver prices to 65.5 US dollars per troy ounce or an increase of 120 percent year-to-date, has the potential to be a positive sentiment for stocks related to precious metal commodities.

Kiwoom Securities recommends ARCI shares with a buy on weakness strategy at the support area of Rp. 1,480 and resistance of Rp. 1,845. Meanwhile, JSMR shares are recommended trading buy with support of Rp. 3,360 and resistance of Rp. 3,570.

"In the midst of a market that tends to be quiet, investors are advised to remain selective and pay attention to stocks with clear sectoral catalysts," explained Kiwoom Securities.