JCI Trying To Level 7,000, Shares In The Transportation Sector Can Be A Choice

Illustration. (Photo: Doc. Antara)

JAKARTA - Mirae Asset Sekuritas Indonesia Senior Investment Information Muhammad Nafan Aji Gusta said that this week's movement of the Composite Stock Price Index (IHSG) will be influenced by hawkish sentiment from the Fed, Indonesia's projected fourth quarter 2022 transactions are in surplus, as well as the release of the performance of large issuers' financial reports. He predicts that the support index is at the level of 6,864 and the maximum resistance level is 6,962.

"JCI must first touch resistance at 6,962, before breaking 7,000," Nafan said, in his research.

Nafan recommends market participants to pay close attention to the non-primer consumer goods sector (cyclicalals), health, and transportation. The industrial and infrastructure sector should be looked at, because it relates to Indonesia's economic performance which tends to be expansive. This is because Indonesia's purchasing managers index (PMI) have 17 consecutive months of expansive status.

"This means that sectors related to industry and infrastructure will definitely support it, because it gets positive sentiment," said Nafan.

He also recommended investors to pay close attention to shares in the transportation sector related to logistics. If the industry expands, logistics connectivity will automatically be more intensive, so this sector is interesting to observe.

Specifically for the technology sector, Nafan assessed, for the temporary phenomenon of techwinter related to recession concerns, it has begun to subside. Investors can observe hawkish signals in the tightening monetary policy of Fed officials.

According to him, market participants have strong expectations this year the Fed is running a less aggressive tightening monetary policy. Based on technical analysis, he recommended ASII, KLBF, TLKM, and UNTR shares.