JAKARTA - The composite stock price index (JCI) is predicted to experience consolidation in today's trading, Thursday, April 16, after yesterday closed down 0.68 percent to 7,623.5.
Phintraco Sekuritas in its research said the infrastructure sector recorded the largest correction. The weakening of the JCI, among others, was due to profit taking after experiencing a rally in the last week.
Technically, the Stochastic RSI is in the overbought area and forms a Death Cross. However, the positive MACD histogram is still rising.
"So it is estimated that the JCI will experience consolidation in the range of 7,500-7,700," wrote Phintraco Sekuritas.
Economic Data
Meanwhile, the rupiah closed at a weak level of Rp17,140 per US dollar, amid a slight strengthening of the US dollar index on Wednesday.
S&P Global Ratings stated that Indonesia's sovereign debt rating is most vulnerable to conflict in the Middle East if it drags on.
The increase in energy costs due to the conflict is projected to increase Indonesia's subsidy costs and put pressure on the state's budget.
More expensive oil imports will widen the current account deficit. S&P also assesses that the acceleration of inflation will drive interest rate hikes that can increase government borrowing costs.
The US blockade of the Strait of Hormuz increases pressure on China and India. With about 98% of Iran's oil exports going to China, as well as ahead of a meeting between President Trump and President Xi, it increases the risk of a fragile peaceful relationship between the US and China.
Meanwhile, relations between the US and India are also becoming more complex because US policies are contrary to the economic interests of India which is experiencing an energy crisis.
Previously, Trump was scheduled to visit China in mid-May, so the US wanted a fairly stable bilateral relationship so that the meeting could go according to plan. However, the blockade of the Strait of Hormuz and the threat of tariffs by the US, increased the risk of the meeting failing.
Phintraco Sekuritas gives recommendations for five stocks today, namely GJTL, CPIN, MAPI, CTRA, and ADRO.
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