JCI Potentially Weakening Tuesday, Matahari Dept Store And Ramayana Stocks Recommended

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Pilarmas Investindo Sekuritas analyst Maximilianus Nico Demus said the movement of the Composite Stock Price Index (JCI) in today's trading, Tuesday, October 12, will experience limited weakness, although there are a number of positive sentiments from domestic and external.

"Based on technical analysis, we see that the JCI currently has a limited opportunity to move lower and is traded in the range of 6,395-6,507," said Nico Demus in his research.

He said that currently there are still a number of positive sentiments that will support the JCI, such as rising commodity prices and increasing consumer optimism as reflected in the Economic Condition Expectation Index (IEK) in September 2021 of 118.2 points, an increase compared to 95.3 a month. previously.

"Of course this can be a positive sentiment for market participants, which has also been responded to by the increase in the JCI monthly by 6.39 percent and the buying action of foreign investors was recorded at Rp. 3.84 trillion," said Nico Demus.

He added that the entry of foreign investors in bluechip banking stocks was an indication of improved expectations for the progress of the economic recovery and the pandemic towards the end of the year.

Meanwhile, the planned trade agreement between the United States and China is also a positive sentiment.

"The anticipation of a meeting between Xi Jinping and Joe Biden will be a cure for certainty to face the outcome of the phase one trade deal," said Nico Demus.

He said that the JCI's rate of technical correction will be limited again, although there are a number of positive sentiments that will support the index's movement. So, Nico Demus recommends investors to pay close attention to the shares of PT Matahari Department Store Tbk (LPPF), PT Paper Factory Tjiwi Kimia Tbk (TKIM), and PT Ramayani Lestari Sentosa Tbk (RALS).