Shaded by Several Positive Sentiments, The JCI on Friday is Expected to Continue Strengthening

JAKARTA - The movement of the Jakarta Composite Index (JCI) is predicted to strengthen today, Friday, January 20, after yesterday's slight increase of 0.80 percent or 54.12 points to a level of 6.819.9.

In his research, Phintraco Sekuritas assessed that the JCI has the potential to test the MA50 in the range of 6.880, if it stays above 6.800 on Friday trading.

"Be aware of the potential for a pullback if gains are halted below the MA50, given the overbought signal on the Stochastic RSI," explained research by Phintraco Sekuritas.

JCI will move with support at 6.740, while resistance at 6.880. Bank Indonesia’s (BI) decision to raise the benchmark interest rate is considered not to have a negative impact on the stock market.

As for the driver of the JCI, from the price of banking stocks, it remained relatively in the positive zone until Thursday's closing.

"This is also supported by reports of banking sector credit growth of 11.35 percent in 2022 and is expected to grow to 12 percent in 2023," said research by Phintraco Sekuritas.

Still from within the country, the market's belief that domestic consumption and government spending will be the backbone of economic growth has boosted consumer and infrastructure stocks.

And several stocks that can be observed on Friday's trading, according to Phintraco Sekuritas, are TOWR, TBIG, JPFA, ISAT, SMGR and MPMX.