JAKARTA - The Composite Stock Price Index (JCI) in trading last week before the long weekend holiday experienced a correction of 0.87 percent to the level of 7,113 with foreign outflows in the regular market of IDR 3.9 trillion.
Equity Analyst Indo Premier Sekuritas (IPOT) Imam Gunadi explained that the weakening of the JCI in general was still influenced by the increasing escalation of the trade war between the United States (US) and China by accusing each other of something.
Imam said that the United States accused China of not keeping promises to relax export control over rare land commodities important for the advanced electronics industry.
On the other hand, Beijing has condemned various restrictions imposed by the US, including jet engine components, access to chip design software, restrictions on Huawei Technologies Co. chips, and student visa restrictions.
"On the basis of these tensions, the US and China will hold a meeting again in London on Monday, June 9, 2025, after previously meeting on May 12, 2025 in Geneva, Switzerland, to lift some high tariffs from each country," Imam explained in his statement, Monday, June 9.
He added that this week's market will only last 4 trading days as there is still a leave holiday with Eid al-Adha at the beginning of the week will really focus on US and Chinese gatherings that are likely to produce a positive deal for the market.
Technically, Imam said that the JCI movement on Thursday last week also formed a hazard describing the market as tolerate an increase in the escalation of the US and China and preparing for a meeting of the US China on Monday, June 9, 2025, which tends to provide positive sentiment to the market.
"Therefore, our JCI projections for the JCI will tend to strengthen with resistance at 7,325 and support at 6,994," he said.
In response to the momentum of easing the US-China trade war this week, PT Indo Premier Sekuritas (IPOT) has recommended a number of shares by utilizing Booster Capital for a breakout strategy suitable for swing traders who want to take chances in stocks that are currently consolidating and Power Fund Series (PFS) Stock Fund Mutuals that provide higher transparent access and liquidity for investors.
1. BBNI: Buy on Breakout
Entry: 4,450
Target: 4,630
Stop Loss: < 4,360
One of the stocks that benefits when there is a deescalation of the trade war is blue chip stocks such as BBNI, but why BBNI? Technically, BBNI is moving in a trend sideways, but has the potential to form a cup and handle pattern that strengthens the narrative of the reversal of BBNI trends in the medium term. Moreover, from the four big banks, BBNI was the top inflow on Thursday last week.
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2. RAJA : Buy on Breakout
Entry: 2,710
Target: 2,880
Stop Loss: < 2,630
When tensions between the two largest economies of the US and China subside, one of the benefits is commodities such as black gold or oil. The eroding tension between the two countries' trade war has the potential to increase demand which will eventually raise oil prices. The stock that benefits from this sentiment is RAJA, besides having an attractive technical movement by forming a bullish continuation pattern or bullish flag.
3. SSIA: Buy
Entry: 1,035
Target: 1,105
Stop Loss: < 1,000
When the uncertainty subsides mainly due to trade wars, investors will be more aggressive in investing in EM countries such as Indonesia, and one of the issuers who benefit is issuers engaged in industrial estate managers such as SSIA.
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