The JCI Predicted To Strengthen On Weekend, This Is The Supporting Factor

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is predicted to strengthen on Friday, June 3. According to the CEO of PT Yugen Bertumbuh Sekuritas, William Surya Wijaya, there are several factors supporting the strengthening of the JCI today.

The surge on Wall Street, dividend sentiment, and economic recovery are positive sentiments that support the JCI movement today. Yugen said the JCI's journey was still in the range of consolidation amidst the still rampant dividends.

"Moreover, economic movements are starting to be seen through increased activity. In addition, capital inflows are still seen as sufficient to be able to boost the JCI's rise in the short term," William said in his research.

JCI has the potential to strengthen within the range of 7.002 - 7.157. The recommended stock options are HMSP, UNVR, BBCA, BJTM, BINA, CTRA, PWON, ASRI, WIKA.

Yesterday, Thursday, June 2, the JCI closed down 0.25 points or 0.00 percent to 7.148.72. Throughout the session, the index moved in the range of 7117.98-7.209.08.

Head of Research at Ciptadana Sekuritas Asia Arief Budiman in his research explained, after strengthening for 4 consecutive months, the JCI recorded a monthly correction in May 2022. The Sell in May and Go Away sentiment became the market's attention in line with the correction that occurred in the global market.

At the close of trading Tuesday, May 31, the JCI rose 111.4 points or 1.58 percent to a level of 7.148.97. However, throughout May 2022, the JCI corrected 1.11 percent and moved in the lowest range of 6509.87 and the highest at 7.148.97 during May 2022.

The correction in the stock market occurred in line with the Fed's decision to raise interest rates in early May. This made the cost of credit and access to capital initially cheap and triggered a rally in the stock market to begin to decrease.

However, the outlook for the JCI movement in June is still considered quite positive. The trend of high commodity prices is a support for the Indonesian market facing stagflation, a condition in which high inflation rates are accompanied by slowing economic growth.