There Are Many Positive Sentiments For The JCI, 10 These Shares Are Recommended By This Week Analysts

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) last week managed to strengthen 1.4 percent. Several positive sentiments support the JCI movement starting from the price of coal which remains high, dividend distribution, trade balance surplus, and increase in the benchmark interest rate of the Fed which is according to expectations.

The window dressing season also supported JCI's positive performance last week. Signs of the start of window dressing began to appear in the shares of the financial sector or bank.

"These signs are a significant price increase during pre-closing, as seen in the shares of an independent bank or BMRI," said Equity Analytic PT Indo Premier Sekuritas Mino in his research, quoted Tuesday, December 20.

On the other hand, there is also negative sentiment that hampered the strengthening of the market last week, namely the opportunity for an increase in the benchmark interest rate by the Fed in 2023 and a decline in retail sales data that sparked fears of a recession in America and continued sell-off by foreign investors.

Next year, the Fed is predicted to increase the benchmark interest rate in line with the determination of the terminal rate at the level of 5.1 percent or equivalent to interest rates in the range of 5.00-5.25 percent. Thus, there will still be an increase in the benchmark interest rate by 75 basis points and then in 2024 and 2025 it will decrease.

"There is still an interest rate increase, it is feared that it will further suppress the American economy," said Mino.

Mino is optimistic that this week's market will continue to strengthen due to domestic and external sentiment. From the domestic side, there are benchmark interest rate sentiment, credit growth data and window dressing.

Mino sees that the downward trend in inflation data and the relative stable exchange rate of Rupiah is predicted to make Bank Indonesia softer in raising the benchmark interest rate.

"According to Bank Indonesia's consensus at the meeting on December 22, it will only raise the benchmark interest rate by 25 basis points to 5.50 percent," he said.

From an external perspective, there is sentiment in the unemployment claim data and consumer expenditure index (PCE) data. It is known, the consumer expenditure index is an indicator of inflation used by the Fed in deciding its monetary policy.

"If the downward trend in the consumer spending index continues, it will make the Central Bank of America relax the increase in the benchmark interest rate," said Mino.

With so many positive sentiments from domestic and external, Mino also recommended buying a number of shares in the financial, property and basic materials to be traded this week, namely BMRI, BBCA, ANTM, INCO, BSDE, ADRO, PTBA, AKRA, UNVR, and APLN.