Finally, JCI Back To Level 5,000

Indonesia Stock Exchange Building. (Angga Nugraha / VOI)

JAKARTA - The Jakarta Composite Index (JCI) has finally returned to its 5,000 level. Monday, June 8 JCI opened up 1.06 percent or 52.58 points to the level of 5,000.36.

Opening the trade, 70 stocks rose, 8 stocks fell, and 18 stocks were stagnant. The trading volume was recorded at 10.95 million shares and transacted for IDR 6.86 billion.

Binaartha Sekuritas analyst M. Nafan Aji Gusta Utama has predicted that the JCI today will move up technically. "There is a potential for bullish continuation in the JCI movement so that it has the opportunity to go to the resistance area," he said.

According to him, the JCI resistance area today will be at the level of 4,975 to 5,097. Meanwhile, the support area, the index is at the levels of 4,865 to 4,778.

As for a number of shares that he can recommend for consideration by investors, including PT Bekasi Fajar Industrial Estate Tbk (BEST), PT Indofood Sukses Makmur Tbk (INDF), PT Hanjaya Mandala Sampoerna Tbk (HMSP), PT Kalbe Farma Tbk (KLBF), and PT Tower Bersama Infrastructure Tbk (TBIG).

Previously, Coordinating Minister for the Economy Airlangga Hartarto assessed that the government's caution in handling COVID-19 had been responded positively by market players. This is reflected in the continued strengthening of the rupiah exchange rate and the composite stock price index (JCI) which moved closer to 4,950 last week.

"What we have seen is that the rupiah exchange rate is below Rp 14,000 per US dollar and the rising stock price index shows that what the government and the Task Force are doing is on the right track," said Airlangga in an official statement, Friday, June 5.

Airlangga admitted that the exchange rate and index would fluctuate. However, if you look at the foreign exchange reserves at Bank Indonesia which are 130 billion US dollars, according to him, this shows the strong investor confidence in the Indonesian economy.