JCI Wednesday Predicted To Continue Weakening Due To Profit Taking Action

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is predicted to weaken in today's trading, Wednesday, May 3, after yesterday's decline of 0.76 percent or 52.41 points to the level of 6,863.30.

Phintraco Sekuritas in its research estimates that the JCI today will move in support areas at the level of 6,820 and resistance at the level of 6,900.

"The weakening of the JCI on Tuesday 2 May can be interpreted as a profit-taking in the overbought area after forming a gap up on Wednesday 26 April. In addition to technical factors, profit-taking action can be triggered by market anticipation of the release of a number of important data this week," explained research. Phintraco Sekuritas.

The first is the estimated slowdown in Indonesia's economic growth to 4.95 percent YoY in the first quarter of 2023 from 5.01 percent YoY in the fourth quarter of 2022. According to Rio, this builds fears that increasing domestic consumption has not been able to offset the negative impact of weakening commodity prices in the first quarter of 2023.

"However, the downward trend in inflation in the last six months has kept the outlook for positive consumption in Indonesia," explained Rio.

For information, inflation in Indonesia fell to 4.33 percent YoY in April 2023 from 4.97 percent in March 2023.

Then the second sentiment is external factors that come from anticipating market participants in the release of the FOMC The Fed results. The Fed is expected to maintain an increase in the benchmark interest rate at 25 bps in the FOMC.

Meanwhile, Phintraco Sekuritas recommends market participants to pay close attention to opportunities for buy on support in shares of TLKM, BBCA, MDKA, ANTM, DSNG, BBTN, and SIDO.