Listen To Various Sentiments That Will 'Haunt' The JCI Today

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) closed up 11.28 points or 0.17 percent to 6,808.20 at the end of trading last Wednesday, July 12. Phintraco Sekuritas in its research said that the sentiment from abroad that moved the JCI was an investor waiting for data on US Inflation.

"The market estimates that US inflation will fall significantly to 3.1 percent yoy in June 2023, from 4 percent yoy in May 2023. This is expected to limit the rate of increase in the Fed Rate," explained research by Phintraco Sekuritas.

The healthcare stocks are again one of the main drivers of the JCI yesterday. This was triggered by the market euphoria towards the ratification of the Health Omnibus Law.

The JCI has the potential for resistance tests of 6,820-6,830 in trading this Thursday, following the formation of a hazard pattern. However, remain aware of the potential profit taking when the JCI enters the resistance area, given the Stochastic RSI condition which has entered the overbought area.

Fundamentally, the JCI movement on Thursday will be influenced by market participants' response to the release of US inflation data. The decline in inflation in the US will strengthen market confidence in the less-aggressive monetary policy by the Fed.

From Asia, the market will pay close attention to the realization of China's export and import value in June 2023. The data is likely to validate indications of a slowdown in economic activity in June 2023.

"Thus, there is the potential to provide negative sentiment to the JCI in Session II Thursday," explained the research of Phintraco Sekuritas.

JCI is projected to move at the resistance level of 6,820 and support 6,700, with a pivot of 6,750. The stocks recommended by Phintraco Sekuritas include BMRI, BBCA, GOTO, MDKA, INDF, BRIS, APLN and TOWR.