JCI Projected To Strengthen Monday, Bank Mandiri And Sampoerna Shares Recommended

Illustration. (Photo: Doc. Antara)

JAKARTA - In today's trading, Monday, October 4, the Composite Stock Price Index (IHSG) is estimated to have limited gains, after closing down by 0.92 percent at the end of last week to 6,228.

According to PT Pilarmas Investindo Sekuritas analyst Maximilianus Nico Demus in his daily research, the JCI movement earlier this week will reverse towards the green zone with limited strengthening.

"Based on technical analysis, we see that the JCI currently has a limited opportunity to move higher and is traded in the range of 6,171-6,288 levels," said Nico Demus.

He assessed that the recovery in the manufacturing sector and sentiment related to the inflation rate will affect the JCI rate. The release of manufacturing data during September 2021 which was above expectations has indicated a recovery in the sector.

He also projects that inflation will remain low until the end of the fourth quarter of 2021, although there is a limited upside potential during Christmas and New Year's momentum.

"We estimate that inflation at the end of 2021 could be lower than the previous estimate of 2.5 percent," he said.

Nico Demus said, Pilarmas Sekuritas estimates that this year's inflation will be above the actual inflation in 2020 which was 1.8 percent.

"Several factors that can withstand inflationary pressures in the remainder of 2021 are the price of gold, tax incentives and a more gradual economic recovery, as well as the risk of the Fed's tapering," he explained.

Thus, explained Nico Demus, the movement of the JCI at the beginning of this week, which will turn to the green zone towards the resistance target of 6,288, should be addressed by investors by considering the accumulated share purchases of PT Bank Mandiri (Persero) Tbk (BMRI), PT Media Nusantara Citra. Tbk (MNCN) and PT HM Sampoerna Tbk (HMSP).