JAKARTA - The Composite Stock Price Index (JCI) is expected to continue its consolidation phase in today's trading, Friday, January 27.
The Phintraco Sekuritas research team said the overbought condition was expected to hold the JCI's strengthening at the resistance area of 6,880-6,900. It is estimated that sensitive stocks with interest rates such as banks can continue to strengthen.
"JCI is expected to continue the consolidation phase above the pivot 6,800-6,820," wrote the research team Phintraco Sekuritas in the research.
The sentiment comes from the ECB and the Bank of Japan which indicates that they do not plan to increase aggressiveness in tightening monetary policy. This then supports the expectations that the Fed's interest rate hike will only increase by 25 basis points.
However, this sentiment can be reversed especially if the realization of the US Michigan Consumer Confidence Final rose to 64.6 in January 2023 from 59.7 in December 2022. Moreover, there is an improvement in employment data.
In addition, the movement of the majority of Wall Street's major index rose more than 1 percent. This strengthening was driven by the release of company financial reports in the US such as Tesla which recorded record sales in 2022.
Then the realization of US economic growth rose 2.9 percent on a quarter-on-quarter (QoQ) basis in the first semester of 2022. Jobless Claims' initials also fell to 186 thousand in the week ending January 21, 2023, from 192 thousand in the previous week, much lower than expected in 205 thousand.
On the other hand, the majority of the indexes in Europe rose on Thursday 26 January. Strengthening was influenced by a number of regional data, such as improving the business sentiment index in Germany and increasing the non-manufacturing index in the Euro Area.
"The latest data assures market participants that there is an improvement in economic conditions and reduces concerns about the recession in Europe," explained the research team Phintraco Sekuritas.
According to Phintraco Sekuritas, several stocks that can be chosen for today's trading are TLKM, MDKA, INDF, BIPI, CPIN, JPFA, MLIA, KLBF and TOWR.
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