JCI Opens Step On The Gas, Analysts: Beware Of Sentiment On The Increase In COVID-19 Cases

Indonesia Stock Exchange Building. (Angga Nugraha / VOI)

JAKARTA - The Jakarta Composite Index (IHSG) opened in the green zone in early trading week. JCI opened higher by 0.33 percent or 18.54 points to 5,590.11 at the opening of trading Monday, November 23.

Opening trades, 91 stocks rose, 24 stocks fell, and 90 stocks remained stagnant. The trading volume was recorded at 154.82 million shares with a transaction value of Rp117.43 billion.

Binaartha Sekuritas analyst Muhammad Nafan Aji Gusta Utama said that today the JCI will still be overshadowed by the increasing sentiment of corona virus cases in Indonesia and globally. JCI is also expected to move lower today.

Nafan added that, technically, JCI today started showing overbought or overbought signals. On the other hand, Nafan said, indicating the potential for further correction to the JCI movement.

"The JCI support and resistance levels for trading today are at the level of 5,529.96 to 5,695.53," Nafan said in his research.

For today's trading, Nafan also recommended a number of stocks that could be considered by investors, namely PT Aneka Tambang Tbk (ANTM), PT Charoen Pokphand Indonesia Tbk (CPIN), PT Ciputa Development Tbk (CTRA), PT Buyung Poetra Sembada Tbk (HOKI) , PT Indofood Sukses Makmur Tbk (INDF), PT Matahari Department Store Tbk (LPPF), and PT Siloam International Hospitals Tbk (SILO).

Meanwhile, Reliance Sekuritas analyst Lanjar Nafi explained, the JCI movement today has the potential to be corrected in the short term.

"Several indicators provide signals of saturation. JCI has the potential to move slightly corrected in the previous trade with support-resistance 5,540-5,600," said Lanjar.

Director of Anugerah Mega Investama Hans Kwee said, the increase in COVID-19 cases in several countries in the world accompanied by a decrease in optimism for the corona virus vaccine caused the stock market to experience weak consolidation.

"Coupled with the problem of stimulus and the financial market that has risen a lot in the last few weeks, it will open a healthy correction for the JCI," explained Hans in his research.

He predicts, for this past week, JCI support will be at the level of 5,541 to 5,462. The resistance levels will be in the range of 5,628 to 5,657.