Driven By An Increase In Commodity Prices, JCI Touching Level 7,361 This Month

Mirae Asset Sekuritas Senior Investment Information Martha Christina. (Photo: Doc. Antara)

JAKARTA - Mirae Asset Sekuritas Senior Investment Information Martha Christina predicts the Composite Stock Price Index (JCI) can strengthen to a level of 7,361 in September 2022.

Although it is still overshadowed by inflation, especially after the government raised the price of fuel oil (BBM) he said the factor in rising commodity prices still has the potential to raise the stock market.

"Technically, we predict the JCI will strengthen in a limited way with support - resistance at levels 7,040 to 7,361, but still potentially correct after the Fed Rate announcement in the third week of September 2022," Martha said in Media Day quoted by Antara, Thursday, September 8.

He said several sectors and stocks of choice this month were banking (BBCA, BBRI, BMRI, BBNI), energy (ADRO, ITMG, PTBA, INDY), and industry (ASII, UNTR).

On the same occasion, Mirae Asset Sekuritas Senior Investment Information Nafan Aji Gusta stated that he is still optimistic about Indonesia's macroeconomic fundamentals, especially because the balance sheet is running vitally to attract foreign investor funds.

Another factor that investors pay attention to, he continued, is stable inflation.

"Indonesia benefits from the decline in the price of goods (deflation), especially from several foodstuffs (red chilies, cayenne pepper, shallots, cooking oil, broiler chicken meat) so that the increase in fuel and the increase in benchmark interest rates is expected to make inflation stable," he said.

Previously, the Central Statistics Agency (BPS) recorded deflation of 0.21 percent in August 2022 or a decrease in the Consumer Price Index (IHK) from 111.8 in July to 111.57.

The main commodities that contributed to deflation in August which amounted to 0.21 percent (mtm) came from shallots, red chilies, cayenne pepper, cooking oil and broiler meat.

With the inflation in August, inflation in the calendar year August 2022 against December 2021 of 3.63 percent and inflation in the year (yoy) of August 2022 against August 2021 of 4.69 percent.