JCI In Early November Opened In The Red Zone, This Is The Menu To Recommend Stocks From Analysts

Indonesia Stock Exchange Building. (Angga Nugraha / VOI)

JAKARTA - The Jakarta Composite Index (JCI) opened in the red zone in early November trading. JCI opened lower by 0.41 percent or 21.16 points to 5,107.07 on Monday, November 2 trading.

Opening trades, 49 stocks rose, 96 stocks fell, and 106 stocks were stagnant. The trading volume was recorded at 189.17 million shares with a transaction value of 261.89 billion.

Director of Anugerah Mega Investama Hans Kwee said that the increase in COVID-19 cases followed by lockdown measures would disrupt economic recovery and potentially lead to financial market correction.

Apart from this sentiment, according to him, the market waiting for the announcement of economic growth in the third quarter and the performance of listed companies will also suppress the index movement.

"Covid-19 cases have made headlines in recent weeks. The increase in cases has prompted Germany and France to announce restrictions on the business sector," Hans Kwee said in his research.

With this sentiment, he projects JCI to move in the range of support 5,000-5,095 and resistance 5,182-5,200.

Meanwhile, according to Binaartha Sekuritas analyst, M. Nafan Aji Gusta Utama, IHSG is expected to strengthen again. On October 27, 2020, the JCI closed down 0.31 percent at 5,128.23.

"Technically, it indicates the chance for a minimum strengthening to the first resistance level which is still wide open," Nafan said.

Nafan estimates that today's JCI movement will move to support and resistance at 5,063.70 to 5,182.53. As for a number of share recommendations that can be considered by investors, including PT Astra Otoparts Tbk (AUTO), PT Erajaya Swasembada Tbk (ERAA), PT Gudang Garam Tbk (GGRM), PT HM Sampoerna Tbk (HMSP), PT Indofood CBP Sukses Makmur Tbk (ICBP), PT Tjiwi Kimia Tbk (TKIM) Paper Factory, and PT Waskita Beton Precast Tbk (WSBP).