JAKARTA - The composite stock price index (JCI) is predicted to move in the range of 9,050-9,200 on today's trading, Wednesday, January 21, after yesterday closed slightly stronger at 0.01 percent to 9,134.7.
The raw materials sector posted the largest strengthening, supported by an increase in gold prices to a new high, above the level of 4,700 US dollars per troy ounce, due to demand for safe-haven assets amid geopolitical uncertainty.
However, the momentum of the strengthening of the JCI has begun to weaken technically, which is signaled by the MACD indicator and the indication of distribution. Stochastic RSI also has the potential to experience a Death Cross in the overbought area.
"So the JCI has the potential to experience a pullback due to profit taking, with the movement of the JCI estimated in the range of 9,050-9,200," wrote Phintraco Sekuritas in its research.
Indices on Asian bourses mostly closed lower on Tuesday amid concerns over an escalation of trade war tensions between the US and Europe, as well as political uncertainty in Japan.
European countries are reportedly discussing retaliatory tariffs against the US and broader measures in response to the threat of new US tariffs.
President Trump also threatened to impose a 200% tariff on French wine and champagne because the French President refused to join the Gaza Peace Council established by Trump.
In addition, the annual meeting of the World Economic Forum (WEF) which is planned to be held on January 19-23, 2026 in Davos, Switzerland, is also expected to be the focus of global investors, especially related to the presence of European and US leaders.
Meanwhile, the Japanese Prime Minister plans to dissolve parliament and hold a by-election on February 8, 2026.
This resulted in the yield of Japanese government bonds with a tenor of 40 years rising to 4 percent for the first time.
However, according to Fitch, it is estimated that Japan's government debt will fall to around 190 percent of GDP in fiscal year 2029 from an estimated 199.5 percent of GDP in fiscal year 2025 and from its highest level of 222 percent of GDP in fiscal year 2020.
The stocks recommended by Phintraco Sekuritas today are MDKA, BRMS, ARCI, MAPI and ADMR.
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