JCI Is Expected To Weaken On Wednesday, Investors Await The Fed's Rate Determination

JAKARTA - The movement of the Composite Stock Price Index (JCI) is estimated to weaken on Wednesday, November 2, after closing down 0.66 percent yesterday or 46.58 points to 7,052.30.

Artha Sekuritas analyst Dennies Christopher Jordan predicts the weakening of the JCI today because investors will tend to be conservative ahead of the Fed's interest rate setting.

"Technically, Dennies observes the candlestick forming a long black body indicating a potential weakness," Dennies explained in his research.

The only factor driving the JCI is the issuer's performance release season for the third quarter of 2022. Dennies suggested that investors should pay attention to PGAS, TOWR, and PTBA stocks.

Meanwhile, PT Indo Premier Sekuritas Equity Analyst Angga Stephanus said there were three positive sentiments for the Indonesian stock market, namely the growth of China's gross domestic product (GDP). China's GDP in the third quarter of 2022 grew 3.9 percent on an annual basis (yoy).

"Indonesia must indeed become a trading partner for China's exports. China's GDP growth certainly shows China's economy is still quite healthy after releasing the lockdown," he said in an official statement.

China deserves attention, he continued, because Indonesia exports a lot of commodities, especially coal, of course, China's demand will benefit Indonesia. Next is the US GDP which grew 2.6 percent in the third quarter of 2022. US economic activity is the mecca of financial decisions around the world.

"US economic activity is Indonesia's second export target," he said.

Positive sentiment from within the country is the massive release of the third quarter financial report. Net income, especially in the banking sector, supported the strengthening of the JCI.

Angga explained, apart from the positive sentiment above, there are 2 things that need to be observed this week when trading stocks.

"First, October inflation. We need to monitor this, if it doesn't match expectations. Second, the October Manufacturing PMI. We hope it will continue to be expansive above 50," he said.