JCI Is Projected To Be Under Pressure This Weekend, Check Out The Stock Recommendations

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) on Friday, October 29, is expected to weaken in the red zone. Selling action will be the trigger.

Phintraco Sekuritas analyst Valdy Kurniawan observed that foreign investors recorded their first net sell since October 4, 2021 in today's trading. Selective selling occurred in energy stocks, especially coal producers in trading.

In his observation, this weakening is inseparable from the sluggish coal commodity prices, in line with the Chinese government's efforts to suppress the rate of coal price increases and the anticipation of the COP26 Climate Change Summit in Glasgow, England on 1 and 2 November 2021.

Considering the above, the JCI is expected to be under considerable pressure this weekend.

"Beware of the potential for further weakness this weekend. JCI is expected to have support levels at 6,450 and resistance at 6,650," said Valdy.

He further explained that stocks that are closely related to economic recovery and household consumption will also be depressed. This was influenced by concerns about the negative impact of the daily spike in new cases of COVID-19 in several countries in recent days.

The Indonesian government is also trying to reduce the potential for transmission, one of which is by removing the Christmas 2021 and 2022 joint leave. For information, historically, consumer confidence in Indonesia generally reached the highest level in a year in December.

For trading tomorrow Friday, Valdy suggested that market participants should not be too aggressive. Several stocks that have the opportunity to buy on support tomorrow Friday are PT Bank Negara Indonesia Tbk (BBNI), PT Bank Mandiri Tbk (BMRI), PT Aneka Tambang Tbk (ANTM), PT Bumi Serpng Damai Tbk (BSDE), and PT Ciputra Development. Tbk (CTRA).