Hit By Many Negative Sentiments, JCI Monday Opened Stronger

Indonesia Stock Exchange Building. (Angga Nugraha / VOI)

JAKARTA - The Jakarta Composite Index (JCI) opened in the green zone on Monday, August 24 trading. JCI opened higher by 0.12 percent or 6.12 points to the level of 5,278.93.

Opening trades, 33 stocks rose, 24 stocks fell, and 37 stocks remained stagnant. The trading volume was recorded at 31.36 million shares and was transacted for IDR 15.46 billion.

Even though it was opened higher, Hans Kwee, Director of PT Anugrah Mega Investama, predicted that the JCI would move down in the first trade this week. External sentiment will be the dominant factor affecting the index movement.

According to him, JCI this week will move with the first support at 5,218 levels, while the second support is projected at 5,119 levels. Then, he projects the resistance level of the index to be in the range of 5,265-5354.

Hans explained that market players are still shrouded in concerns regarding the negotiations between Republicans and Democrats in the United States (US).

"Negotiations regarding the continuation of the fiscal stimulus in dealing with the impact of the corona virus pandemic or COVID-19 have not yet met a common ground, especially regarding the aid package with a smaller nominal value," said Hans Kwee in his research.

The US economy is also in a state of uncertainty, after data from the US Department of Labor showed claims for unemployment benefits increased to 1.1 million. This figure is higher than some economists forecast of 923,000.

Apart from the US, sentiment that will influence the JCI movement also comes from the European zone, where the service sector recovery is considered to be running slowly. Market players are concerned about the slow pace of economic recovery due to several new cases of COVID-19 in several European countries.

Head of Research Reliance Sekuritas Indonesia, Lanjar Nafi, also projects that the JCI will move in the red zone. He predicts the index movement will be in the range of 5,220-5,230.

Some of the stocks that investors can observe in today's trade include PT Bukit Asam Tbk (PTBA), PT Sarana Menara Nusantara Tbk (TOWR), PT Gas Negara Indonesia Tbk (PGAS) and PT Ace Hardware Tbk (ACES). Then, PT Bumi Serpong Damai Tbk (BSDE) and PT Medco Indonesia Tbk (MEDC).