Monday's JCI Potentially Continue Strengthening, This Line Of Stocks Is Recommended

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (IHSG) is projected to continue strengthening to the level of 6,680-6,700 in today's trading, Monday, January 16, after last week's strengthening to a level of 6,641.83 or up 0.17 percent.

Phintraco Sekuritas in their research stated that the JCI technically describes the stochastic RSI and MACD forming a golden cross. These conditions indicate the possibility of a further rebound in the short term.

"JCI maintains the chance of a rebound to 6,680-6,700 on Monday, with support at 6,600 and resistance at 6,740," wrote the Phintraco Sekuritas Research Team.

Externally, the main sentiment for JCI movement is still related to market belief that the Fed will slow down interest rate hikes at the FOMC February 2023. This expectation cannot be separated from the significant decline in inflation in the US in December 2022.

From Europe, inflation in the Euro Area is also expected to fall to 9.2 percent yoy in December 2022 from 10.1 percent yoy in November 2022. Considering the above, Bank Indonesia (BI) is expected to hold its benchmark interest rate at 5.50 percent in the Board of Governors meeting (RDG) in January 2023.

"This estimate has the potential to trigger a rebound in rate-sensitive stocks, especially banks," continued the Phintraco Sekuritas Research Team.

Furthermore, the Phintraco Sekuritas Research Team believes market players can pay attention to buy on support opportunities in shares of PT Bank Central Asia Tbk (BBCA), PT Bank Negara Indonesia Persero Tbk (BBNI), PT Bank Rakyat Indonesia Persero Tbk (BBRI), PT Bank Mandiri Persero Tbk (BMRI), PT Alam Sutra Realty Tbk (ASRI), PT Adhi Karya Persero Tbk (ADHI), and PT Wijaya Karya Persero Tbk (WIKA)

In addition, the trend towards a rebound in commodity prices and positive expectations of domestic demand could encourage a further rebound in the shares of PT Adaro Minerals Indonesia Tbk (ADMR), PT Adaro Energy Indonesia Tbk (ADRO), PT Elnusa Tbk (ELSA) and PT Perusahaan Gas Negara Tbk (PGAS).