JAKARTA - President Joko Widodo (Jokowi) stated that the Emergency PPKM was extended until July 25, 2021. Capital market analysts assessed that this would be a positive sentiment driving the Jakarta Composite Index (JCI) in today's trading, Wednesday 21 July.
Praus Capital Research Head Alfred Nainggolan said the extension of the Emergency PPKM shows the government's concern to continue to complete the second wave of the spread of the delta variant of the COVID-19 virus.
"If the PPKM extension is extended, the market views positively because the availability of health facilities is better. The availability of health facilities such as hospitals and isoman places has been relaxed after PPKM since July 3. With this extension, it shows that the government is still concerned about controlling COVID-19," said Alfred when contacted by journalists.
On the other hand, the JCI will get negative sentiment from the external side, as there has been a deep correction in global stock markets earlier this week.
"But if today the American stock can rebound, it can eliminate the negative sentiment of the big correction that occurred last Monday," he explained.
Meanwhile, according to analyst of PT Reliance Sekuritas Indonesia Tbk (RELI), Lanjar Nafi Taulat Ibrahimsyah, the JCI has the opportunity to rebound to reach the nearest resistance level at 6,082.
Technically, said Lanjar, the JCI movement experienced a correction, but was still quite able to maintain the support level so that there was a potential for a rebound that would erase losses in the previous trade.
Therefore, Lanjar continued, the potential for a technical rebound in today's JCI rate can be utilized by investors by accumulating the purchase of shares of PT Astra Agro Lestari Tbk (AALI), PT Ace Hardware Indonesia Tbk (ACES), PT Adaro Energy Tbk (ADRO), PT Japfa Comfeed Tbk (JPFA), PT Matahari Putra Prima Tbk (LPPF), PT London Sumatra Indonesia Tbk (LSIP), PT Perusahaan Gas Negara Tbk (PGAS), and PT Paper Factory Tjiwi Kimia Tbk (TKIM).
MPPA is a retail company owned by conglomerate Mochtar Riady, while LSIP is a palm oil issuer from Anthony Salim. Meanwhile, TKIM is a paper mill company owned by the late conglomerate Eka Tjipta WIdjaja.
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