The JCI on Tuesday has the Opportunity to Strengthen, Consumer Sector Shares Can be Watched

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (IHSG) is predicted to strengthen again in today's trading, Tuesday, May 16, after yesterday's slight increase of 3.97 points or 0.06 percent to a level of 6.711.74.

Phintraco Sekuritas, in its research, looked at Monday's trading, where a hammer pattern was formed on the JCI. Technically, the Stochastic RSI which is still in the oversold area opens the JCI technical rebound to the level of 6.750 if it stays above 6.700 on Tuesday.

The sentiment that affected the JCI from within the country was Indonesia's Trade Balance which returned to a surplus of 3.94 billion US dollars in April 2023. However, this surplus occurred in line with the decline in the value of exports which fell 29.4 percent on an annual basis and the value of imports fell 22.31 percent on an annual basis in April 2023.

The decline was much deeper than expected. This is in line with the anticipation of market players triggered by the decline in China's manufacturing index.

Meanwhile, the external sentiment that has influenced the JCI movement is market players who are still waiting for the latest developments regarding the debt ceiling in the US.

"Following, news of the postponement of the meeting regarding the debt ceiling between US President, Joe Biden and the leaders of the US Congress, which was originally scheduled for last Friday," explained Phintraco's research.

Apart from that, China will also release the retail sales and unemployment rate per April 2023 on Tuesday, May 16 which will also affect the movement of the JCI. This condition has the potential to trigger continued sector rotation to consumer-related sectors.

The recommended stocks for market players are consumer stocks, such as HMSP, ICBP, AMRT, DSNG, STAA, CPIN, and JPFA.