JAKARTA - The Composite Stock Price Index (JCI) is projected to still be corrected this week. Phintraco Sekuritas in its research estimates that the JCI this week will move in the resistance range of 7,200, pivot: 7,150, and support 7,100.
Phintraco Sekuritas explained that the main index on Wall Street last week closed lower, mainly driven by a significant weakening last Friday, due to the outbreak of the Israel-Iran war which increased geopolitical risks and pushed for an increase in crude oil prices.
Not only that, continued Phintraco Sekuritas, Israel's attack on Iran, which Iran later responded to, sparked fears of disruption to crude supplies so that crude oil prices rose by 7 percent at the end of last week.
Phintraco Sekuritas added that the price of gold also strengthened by around 1.3 percent at the level of 3,428 US dollars per troy ounce, along with the increase in demand for a safe haven. US 10-year Bond Yield rose 5 bps to 4,411%.
"The increase in crude oil prices is driving an increase in energy prices which can result in an increase in inflation rate again," wrote Phintraco Sekuritas.
This week, Phintraco Sekuritas said the market's focus was on the development of conflicts in the Middle East and the progress of US trade negotiations with its trading partners. The market is also watching the G7 Summit in Canada on June 15-17, 2025. Several central banks will discuss monetary policy this week, namely The Fed, PBoC, BoJ, BoE and BI which are expected to maintain a fixed interest rate.
Likewise with central banks in Switzerland, Sweden, Norway, Turkey, Brazil, the Philippines and Taiwan, "added Phintraco Sekuritas.
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During last week, Phintraco Sekuritas said the JCI closed up 0.74 percent, although last Friday it closed lower at 7,166.06 (0.53 percent) due to increased geopolitical tensions in the Middle East and concerns about its impact on the domestic economy, amid the threat of tariffs and weakening people's purchasing power.
"Technically, it is estimated that the JCI this week has the potential to continue corrections and test the MA200 level at around 7,132 to support levels at 7,100," said Phintraco Sekuritas.
The stocks recommended by Phintraco Sekuritas today are AADI, CTRA, NCKL, HRUM and ESSA.
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