Vaccine Research Progress Supports JCI Increase Tuesday Morning

Indonesia Stock Exchange Building. (Angga Nugraha / VOI)

JAKARTA - The Jakarta Composite Index (JCI) opened in the green zone on trading Tuesday, July 28. JCI opened higher by 0.03 percent or 1.44 points to the level of 5,118.11.

Opening trades, 33 stocks rose, 33 stocks fell, and 22 stocks remained stagnant. The trading volume was recorded at 26.03 million shares and was transacted for IDR10.73 billion.

Binaartha Sekuritas Indonesia analyst M. Nafan Aji Gusta Utama said the JCI movement was supported by positive sentiment from outside and within the country. From abroad, the IHSG will be encouraged by optimism for the progress of COVID-19 vaccine research.

In addition, positive sentiment came from expectations of the company's positive financial performance during the first half of this year.

"JCI has the opportunity to go to the nearest resistance. The level of support and resistance index today may be at 4,975.54 to 5,172.37," Nafan said in his research.

He recommended stocks to be watched by investors in today's trade, PT Bank Central Asia Tbk (BBCA), PT XL Axiata Tbk (EXCL), and PT Jasa Marga Tbk (JSMR).

Likewise, Reliance Sekuritas Indonesia analyst Lanjar Nafi also estimates that the JCI will move higher today. Based on his technical analysis, JCI is predicted to be in the range of 5,080-5,158.

According to him, investors will still look at what steps the government will take to combat the economic impact of the COVID-19 pandemic and monitor the progress of the corona vaccine clinical trial.

In addition, investors will also keep an eye on the movement of gold commodity prices. As is known, a number of countries are trying to find vaccine candidates to break the chain of spread of corona and reduce state losses due to the virus which has infected 16.6 million people in the world.

One of the hopes for vaccine development progress comes from the United States (US) biotech company, Moderna Inc. Meanwhile, domestically, the government is also developing a vaccine candidate named Merah Putih.

The vaccine research was carried out in collaboration between the Eijkman Institute, LIPI, Bio Farma, the State Intelligence Agency (BIN), and the National Vaccine Acceleration Team consisting of the Ministry of Research and Technology, the Ministry of Health, and the Ministry of BUMN.

With these sentiments, he also recommended several stocks for investors to pay attention to, including PT Adaro Energy Tbk (ADRO), PT Charoen Pokphand Indonesia Tbk (CPIN), PT Aneka Tambang Tbk (ANTAM), PT Bank Jabar Tbk (BJBR), and PT Bank Jatim Tbk (BJTM).