Lots Of Negative Sentiment, JCI Monday Opened In The Red Zone

Indonesia Stock Exchange Building. (Angga Nugraha / VOI)

JAKARTA - The Jakarta Composite Index (JCI) opened in the red zone on Monday, August 10 trading. Based on VOI monitoring at 09.02, the JCI moved slightly lower by 0.03 percent or 1.75 points to the level of 5,142.14.

Opening the trade, 163 stocks rose, 61 stocks fell, and 116 stocks were stagnant. The trading volume was recorded at 271.29 million shares and transacted for Rp190.45 billion.

JCI is predicted to fall in today's trade. The index movement today followed the trend throughout last week which fell 0.11 percent to 5,143.89.

Hans Kwee, Director of PT Anugerah Mega Investama, assessed that the JCI this week will move to weaken consolidation with the support area in the range 4,982 to 5,233. While the resistance is in the range of 5,200 to 5,250.

Some sentiments that might influence the JCI movement this week include investor concerns about the second wave of COVID-19. This was triggered by a spike in cases in the United States (US), countries in Africa and Latin America.

"The concern is more about the potential for disruption to economic recovery due to social restrictions to prevent the spread of the virus," said Hans.

Another negative sentiment comes from China's conflict with the United States (US). US President Donald Trump has banned his country from dealing with China's two tech giants, ByteDance and Tencent for 45 days.

ByteDance is a company that created the Tik Tok application and Tencent which created the WeChat application. "The market is worried that China will retaliate by blocking US applications such as Apple or Microsoft," he said.

Binaartha Sekuritas Indonesia analyst M Nafan Aji Gusta Utama also assessed that the JCI will move down. This is based on technical analysis in which the JCI has the potential to go to the nearest support area.

"Support and resistance are at 5097.14 and 5233.17," Nafan said.

Nafan also recommended a number of shares, including PT Astra Agro Lestari Tbk (AALI), PT Ciputra Development Tbk (CTRA), PT Bekasi Fajar Industrial Estate Tbk (Best), PT Jasa Marga (Persero) Tbk (JSMR), and PT Perusahaan Gas Negara (Persero) Tbk (PGAS).