Rising Reference Interest Rate Will Make JCI Stronger Today?

JAKARTA - The movement of the Composite Stock Price Index (JCI) is projected to strengthen for today's trading, Wednesday, August 24 after yesterday's slight increase of 0.78 percent or 55.28 points so that it parked at the level of 7,163.27.

Artha Sekuritas analyst Dennies Christopher said that the JCI closed higher yesterday, driven by bargain hunting by investors after weakening in the previous two trading days.

Dennies also said that Bank Indonesia's decision to raise interest rates to a level of 3.75 percent was considered good by investors to suppress inflation.

As for today's trading, Dennis predicts the JCI will strengthen. He explained that technically the candlestick, JCI formed an outside-up formation indicating the potential for strengthening.

"The movement is driven by optimism about the increase in Bank Indonesia's interest rate which is expected to suppress domestic inflation," said Dennies in his research.

In addition, he revealed that other sentiments came from several issuers who will report performance in the first semester of 2022. Artha Sekuritas estimates that the JCI will move with support at 7,119 and 7,075 and resistance at 7,195 and 7,227.

The stocks that can be observed include PT Krakatau Steel Tbk (KRAS), PT Medco Energy Tbk (MEDC), and PT Sarana Menara Nusantara Tbk (TOWR).