JAKARTA - The Composite Stock Price Index (JCI) is still under pressure in today's trading, Monday, April 6, after last Thursday closed down 2.19 percent or 157.66 points to the level of 7,026.78.
BRI Danareksa Sekuritas in its research said that the weakening of the JCI was triggered by global sentiment that had deteriorated again, especially related to geopolitical developments in the Middle East.
"Selling pressure, especially from foreign investors, is still quite dominant. The main sentiment still comes from global factors, especially geopolitics in the Middle East," he explained.
There was optimism after the statement by US President Donald Trump who said the conflict could end soon. However, the latest statement was more aggressive, which triggered a return to risk-off mode in the market.
This condition is exacerbated by the surge in energy prices, especially crude oil, which also puts pressure on global market sentiment.
From the domestic side, the government's policy to hold fuel prices and encourage efficiency is considered quite appropriate in mitigating the impact of rising energy prices. However, the market is beginning to pay attention to the potential for widening the State Budget (APBN) deficit.
In addition, the economic data released also showed a condition that tends to be diverse. The trade balance surplus is still recorded, but has decreased on an annual basis. Meanwhile, inflation which has begun to decline on the one hand is a positive sentiment, but also reflects the moderation of people's purchasing power.
Technically, BRI Danareksa Sekuritas assesses the JCI is still under pressure with a tendency to consolidate.
"Strong support at the 7,000 level and resistance in the range of 7,100 to 7,200. As long as global sentiment is not conducive, the JCI is likely to still move in a consolidation phase with a tendency to weaken," he explained.
For today's trading, the JCI is projected to still move limited with a tendency to weaken, along with the dominance of external sentiments.
In this condition, investors are advised to be defensive and selective. The short-term trading approach is considered more appropriate than aggressive accumulation.
From a sectoral perspective, opportunities are still open in the energy and commodity sectors that benefit from global price increases, such as coal, oil, and crude palm oil (CPO). In addition, gold remains attractive as a safe haven asset amid global uncertainty.
Meanwhile, several stocks that can be observed according to BRI Danareksa Sekuritas, including ITMG, PTBA, ELSA, DSNG, and TAPG.
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