JCI Predicted to Weaken before Christmas Holidays, Check its Stock Recommendations

Illustration. (Photo: Dok. Antara)

JAKARTA - The Composite Stock Price Index (JCI) is projected to move slightly weaker in today's trading, Wednesday, December 24, after yesterday closed down 0.71 percent to 8,584.78, after having moved stronger at the beginning of the session.

The property sector recorded the largest correction and became the main suppressor of the index, while the industrial sector actually recorded the largest strengthening. Phintraco Sekuritas, in its research, assessed the weakening of the JCI occurred amid increasing market uncertainty and the absence of a strong enough new sentiment to encourage the index to continue the rally.

On the other hand, the movement of the rupiah exchange rate tends to stagnate at the level of Rp. 16,765 per US dollar in the spot market, as the US dollar index weakens due to increased market expectations of a Fed rate cut next year.

"Pressure on the JCI is still considered reasonable and has not changed the medium-term trend, as long as the index is able to survive above the strong support area," explained Phintraco Sekuritas.

From a technical point of view, the JCI closed below the 5-day moving average (MA5) and MA20, which indicates the loss of momentum in the short term. However, the correction is still relatively healthy as long as the JCI remains above the MA50 at the level of 8,418. The Stochastic RSI indicator is still in the oversold area, but the negative MACD histogram is getting wider.

"With this condition, the JCI has the potential to move sideways in the support range of 8,500 to 8,525 and resistance in the area of 8,650 to 8,680," explained Phintraco Sekuritas.

From the outside, investors will pay attention to the release of the United States initial jobless claims data for last week which is scheduled to be released this Wednesday. Initial jobless claims are expected to increase slightly to 226,000 people, from the previous week's 224,000 people.

Meanwhile, the stocks recommended by Phintraco Sekuritas today, including WIFI, INET, HRUM, ISAT, and MBMA as short-term top picks.