JCI Potentially Strenghtens To 6.100, Squeezing Shares Of The Conglomerate Eka Tjipta Widjaja, Ciputra, And Alexander Tedja

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Mirae Asset Sekuritas Indonesia believes the stock market can move positively and can make the Composite Stock Price Index (JCI) continue to strengthen to above 6.100. The main factor that can push the stock index to climb again this month is positive domestic economic data.

Martha Christina, Senior Investment Information at Mirae Asset Sekuritas, said that supporting economic data, especially the PMI Manufacture which continued to expand, controlled inflation, skyrocketing automotive sales, consumer confidence index, trade balance, and economic growth.

"JCI is projected to move in consolidation with a tendency to strengthen, based on technical analysis with support at 5.883 and resistance at 6.115, after yesterday skyrocketing 1.4 percent and breaking through 6.000, to 6.031 to be exact", said Martha at the Media Day Mirae Asset Sekuritas event, Thursday, June 3.

As an illustration, the PMI for May Manufacturing has just announced 55.3. Besides still expanding (above nominal 50), this figure also made history as the highest record for Indonesian manufacturing industry activity.

Economic growth in the first quarter of 2021 has also improved greatly, namely minus 0.74 percent year on year (yoy) (vs. minus 2.19 percent in the fourth quarter of 2020). In addition, the government's confidence in the economic improvement of up to 7 percent this year will also be a positive driver.

Martha said that although it has more potential to strengthen, the JCI still has the potential for consolidation due to several risks, such as rising COVID-19 cases and issuers' financial reports that are below expectations. This risk can limit market transaction activity so that it can again suppress the average daily transaction value on the stock market.

With optimism, he said that there were three preferred stock sectors for the June period, namely primary consumer goods (preferred stocks: JPFA and MAIN), and infrastructure (preferred stocks: TLKM, EXCL, and ISAT).

The Mirae Asset Sekuritas Investment Information team also added several stocks that deserve attention due to their good financial performance, such as BBTN, ERAA, and AKRA.

As for stock options for the property sector, the Mirae Sekuritas team recommends shares in PT Bumi Serpong Damai Tbk (BSDE), a developer owned by the late conglomerate Eka Tjipta Widjaja. Then PT Ciputra Development Tbk (CTRA), the developer of the late Ciputra.

Shares of PT Pakuwon Jati Tbk (PWON), the developer of the Kota Kasablanka and Gandaria City malls owned by the conglomerate Alexander Tedja are also worth collecting, Martha said.