JCI Thursday Potentially Weakens Due To Profit Taking, Check Out Stock Recommendations

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) is projected to be corrected in today's trading, Thursday, May 22, after yesterday's gain of 0.67 percent and ending in the green zone at the level of 7,142.46.

Phintraco Sekuritas, assessed that positive sentiment came from the market which positively welcomed Bank Indonesia's (BI) decision to lower the benchmark interest rate by 25 basis points to 5.5 percent. The deposit interest rate fell to 4.75 percent, while the loan interest rate was 6.25 percent.

Technically, several indicators show the JCI is still in the overbought area. If the JCI cannot break out above the level of 7200 with a large volume, it is estimated that there will be a minor correction due to profit taking," explained Pintraco Sekuritas research.

For Thursday, Phintraco predicts the market awaits home sales release data in April 2025 which is expected to rise to 4.1 million from 4.02 in March and awaits the release of the manufacturing PMI index as well as services in Germany, France, the UK and the Euro Area which are expected to improve slightly compared to the previous month.

"From domestic, the decline in the BI Rate to 5.5 percent is in line with the inflation rate that is still under control in the BI target range, which is 2.5 to 2.01 percent, the stabilization of the rupiah in global uncertainty is still high, and to encourage economic growth," explained Phintraco Sekuritas.

This is in line with the decline in the projection of national economic growth by BI in the range of 4.6 percent YoY - 5.4 percent YoY in 2025 from the previous projection of 4.7 percent YoY - 5.5 percent YoY.

In the future, BI will continue to direct monetary policy to maintain inflation in the target and rupiah exchange rate based on fundamentals.

The recommended stocks include PT Vale Indonesia Tbk (INCO) and PT Harum Energy Tbk (HRUM).