JCI Opens Stronger On Friday, Analysts Recommend BSD And Lippo Cikarang Stocks

Indonesia Stock Exchange Building. (Angga Nugraha / VOI)

JAKARTA - The Jakarta Composite Index (IHSG) opened in the green zone on trading Friday, October 16. JCI opened higher by 0.12 percent or 6.19 points to 5,111.34.

Opening trades, 32 stocks rose, 12 stocks fell, and 33 stocks remained unchanged. The trading volume was recorded at 69.73 million shares with a transaction value of IDR65.01 billion.

JCI movement is expected to continue the process of decline this weekend, after yesterday ending in negative territory with a decline of 1.37 percent to the level of 5,105.

"Technically, it indicates the potential for further correction to the JCI movement, so that the index has the opportunity to go to the nearest support ," said PT Binaartha Parama Sekuritas analyst Muhammad Nafan Aji Gusta Utama in his research.

Currently, JCI is trying to stay above the support level of 5.023, while the closest resistance target that is trying to reach is at 5,187.

Thus, Nafan explained, the potential for further weakening in today's JCI movement could be exploited by investors by accumulating the purchase of shares of PT Bumi Serpong Damai Tbk (BSDE), PT Charoen Pokphand Tbk (CPIN), PT Indosat Tbk (ISAT), PT Jasa Marga ( Persero) Tbk (JSMR), and PT Lippo Cikarang Tbk (LPCK).

Meanwhile, according to the analyst of PT Reliance Sekuritas Indonesia Tbk (RELI), Lanjar Nafi Taulat Ibrahimsyah, the JCI is beginning to be overshadowed by the potential for a short-term downward trend.

"Technically, the JCI movement is still overshadowed by the weakening this weekend. The support-resistance range is at the level of 5,072-5,118," explained Lanjar.

He also recommended that investors take advantage of the pattern of lowering the JCI by collecting shares of Indofood CBP Sukses Makmur Tbk (ICBP), PT Indofood Sukses Makmur Tbk (INDF), PT Semen Indonesia (Persero) Tbk (SMGR), PT United Tractors Tbk (UNTR), and PT Media Nusantara Citra Tbk (MNCN).