JCI Is Predicted To Continue Strengthening And Try To Return To The 7,200 Level Today

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is predicted to continue strengthening in today's trading, Wednesday, June 8 after parking at 7,141.04 or up 0.62 percent yesterday.

Artha Sekuritas analyst Dennies Christopher Jordan explained that the JCI yesterday closed higher since the beginning of trading, supported by optimism about the strengthening of global stock markets.

"The strengthening was also driven by sentiment on the release of issuers' performance in the first quarter of 2022, which on average recorded good growth and the dividend distribution season," he explained in the research.

Meanwhile, the US stock market closed higher. The Dow Jones index rose 0.05 percent to 32,915.78, the NASDAQ closed up 0.4 percent at 12,061.37, while the S&P 500 index closed at 4,121.43 or up 0.31 percent.

Dennies explained that Wall Street stocks closed solidly higher, helped by gains in Amazon.com and other mega-cap growth stocks. However, concerns over inflation and interest rates continued to limit the movement of US stock markets. A solid jobs report on Friday lowered hopes of a pause in the Federal Reserve's aggressive policy tightening plan to fight inflation.

Meanwhile, shares of US-listed Chinese companies rose after reports that Chinese regulators concluded an investigation into ride-hailing giant Didi Global Inc and two other companies.

Dennis predicts the JCI will strengthen in tomorrow's trading. Technically, the candlestick formed a long black white body after rebounding around the support area accompanied by the MACD indicator which was in the accumulation area indicating a strengthening trend.

"In addition, the movement will still be supported by the release of the issuer's performance in the first quarter of 2022 and the distribution of dividends," he added.

Furthermore, Dennies estimates that the JCI will move at support levels of 7,001 and 7,071 and resistance at 7,201 and 7,261. Meanwhile, several stocks that Dennies recommends for trading today are PT HM Sampoerna Tbk (HMSP), PT PP Tbk (PTPP), and PT Telkom Indonesia Tbk (TLKM).