JAKARTA - The Composite Stock Price Index (JCI) is predicted to experience a further correction in today's trading, Thursday, January 22, after yesterday weakened 1.36 percent to the level of 9,010.3 which was triggered by profit taking after the index set a record high in the previous session.
Phintraco Sekuritas in its research explained that the correction of the JCI today was exacerbated by domestic sentiment following President Prabowo Subianto's decision to revoke the permits of 28 companies in the forestry, plantation, energy, and mining sectors due to environmental violations.
Selling pressure took place across sectors, with the industrial sector weakening 6.33 percent, the property sector weakening 3.44 percent, and transportation weakening 3.04 percent to become the main suppressors of index movements.
"Technically, the JCI closed below the MA5, accompanied by a narrowing of the positive MACD area and stochastic RSI moving down from the overbought area, thus opening the opportunity for further correction with the potential to test the support area in the range of 8,950-9,000," wrote Phintraco Sekuritas.
On the other hand, the decision of the Bank Indonesia (BI) to maintain the BI Rate at the level of 4.75 percent tends to be relatively in line with market expectations and has not been able to be a catalyst for correction, given that the current monetary policy focus is more directed at stabilizing the rupiah exchange rate amid global uncertainty.
Going forward, the market will pay attention to global sentiment developments, especially President Donald Trump's speech at the World Economic Forum in Davos, as well as the release of US Gross Domestic Product (GDP) data which is expected to grow strongly by 4.3 percent QoQ in the third quarter of 2025.
This condition confirms that the momentum of US economic growth remains solid, especially supported by the continued strengthening of household consumption, the recovery of export activities, and the expansion of government spending which again contributes positively to growth.
Phintraco Sekuritas recommends five stocks for today, namely INCO, MEDC, EXCL, BRIS and HRUM for trading.
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