JCI On Monday Is Predicted To Move Stronger, This Is The Driving Factor

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) today, October 24, has the potential to strengthen again, continuing last week's trend in line with the strengthening of interest rates.

At the end of last week, the JCI closed at 7,017.77 or up 0.53 percent on a daily basis. Artha Sekuritas analyst Dennies Christopher Jordan in his research explained that the strengthening of the composite stock index was driven by optimism after Bank Indonesia raised the BI-7 Day Reverse Repo Rate (BI7DRR) by 50 bps.

"The increase in the benchmark interest rate is considered good for the economy and the rupiah exchange rate in the short term," said Dennies in his research.

Dennis predicts the JCI will strengthen in today's trading. Technically, the JCI candlestick formed a higher high and a higher low indicating a potential strengthening.

However, the movement will tend to be limited after strengthening in the last week and there will be a potential for correction. The movement will still be driven by the issuer's performance release season as of the third quarter of 2022.

Furthermore, Dennies estimates that JCI will move at support levels of 6,933 and 6,975 and resistance at 7,058 and 7,099. The stocks that Dennies recommends for trading today are PT Erajaya Swasembada Tbk (ERAA), PT AKR Corporindo Tbk (AKRA), and PT Sawit Sumbermas Sarana Tbk (SSMS).