JAKARTA - The Composite Stock Price Index (JCI) is predicted to move sideways in trading, today, Friday, March 27, after yesterday closed down 1.89 percent to 7,164.
Phintraco Sekuritas in its research explained that the weakening of the JCI was partly due to profit taking amid uncertainty over negotiations for a ceasefire between the US and Iran.
Asian stock indexes closed mixed and European bourses opened weaker amid difficulties in understanding contradictory statements between the US and Iran over the past 48 hours regarding the status of peace negotiations.
The US said negotiations had taken place, but Iran denied direct interaction with the US. Iran stated that it had no intention of negotiating with the US and added that the exchange of proposals between the two countries through mediators did not mean that negotiations had taken place.
Conversely, the rupiah closed stronger at Rp16,904 per US dollar in the spot market, Thursday, March 26, in contrast to the majority of currencies in Asia.
Meanwhile, the energy sector experienced the largest correction, while the transportation sector was the only sector that strengthened.
Technically, although the JCI closed weaker, the negative histogram of the MACD continued to narrow and the Stochastic RSI was directed at the pivot area. The JCI is still holding above the MA5.
"It is estimated that the JCI will move sideways in the range of 7,050-7,250 levels," wrote Phintraco Sekuritas.
Phintraco Sekuritas explained that the Minister of Finance added the placement of government funds worth Rp. 100 trillion to banks to maintain liquidity amid rising yields of Indonesian government bonds.
With this addition, the total government funds placed in banks reached around Rp300 trillion. However, the placement of these funds with a more flexible scheme and can be withdrawn at any time.
Phintraco Sekuritas recommends five stocks for today, namely JPFA, MDKA, UNTR, MAIN and AADI.
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