JCI Potentially Weakening Wednesday, Indosat And Mayora Shares Recommended

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) in today's trading, Wednesday, October 6, is estimated to have the potential to weaken, but will experience a slight strengthening at the end of today's trading session.

"Based on technical analysis, we see that the JCI currently has a limited opportunity to move lower, with the potential for a slight strengthening at the end of the session and traded in the range of 6,234-6,361," said Nico Demus in his research.

He considered that currently the JCI is overshadowed by sentiment related to the policy of increasing tax rates which will be the fruit of simalakama towards efforts to grow the national economy.

"The increase in tax rates is considered to be an obstacle to economic recovery," said Nico Demus.

According to him, the government has decided to increase the VAT rate to 11 percent in 2022, so this could increase pressure on the inflation rate.

"The direct impact will be seen on people's purchasing power, because it will reduce consumption," he added.

But on the other hand, the expansion of tax rates is believed to be able to support economic recovery and the government can cover lost tax revenues.

Nico Demus added that the policy to increase tax rates also needs to be followed by improvements in administration and tax payment compliance.