JCI Tuesday Vulnerable To Weakening, Six Stocks Recommended

JAKARTA - The movement of the Composite Stock Price Index (JCI) is projected to weaken in today's trading, Tuesday, October 17, after yesterday's decline of 0.44 percent alias 30.49 points to 6,896.29.

Phintraco Sekuritas in his research said, along with the weakening of the JCI on Monday, the Stochastic RSI formed a death cross in the overbought area.

"The weakening is followed by an increase in the volume of transactions. Thus, the JCI is still vulnerable to the potential for further weakening on Tuesday, October 17," explained the research of Phintraco Sekuritas.

The negative sentiments that overshadow the JCI stem from the realization of Indonesia's export and import performance, respectively, fell 16.17 percent and 12.45 percent on an annual basis in September 2023. Alias was worse than market expectations which only decreased by 13.5 percent and 5.5 percent.

Thus, even though the Indonesia Trade Balance (NPI) surplus touched 3.42 billion US dollars. However, the rupiah exchange rate was again depressed to Rp15,721 per US dollar on Monday afternoon.

In addition, external sentiment is also influenced by market players who continue to observe the development of the geopolitical situation in the Middle East. Where petroleum prices tend to be corrected until Monday afternoon.

Phintraco Sekuritas predicts the JCI will move in the support range of 6,875 and resistance at 6,980. The above conditions are expected to strengthen the tendency to wait and see market participants.

The recommended stocks are speculative buy, namely MBMA, INDF, MIKA and energy stocks with a fairly large export composition such as ADRO, ADMR and HRUM.