JCI Thursday Projected To Correct Slightly

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is projected to be corrected again in today's trading, Thursday, April 6, after weakening 0.20 percent or 13.50 points to 6,819.67 yesterday.

Phintraco Sekuritas predicts the JCI will consolidate again in the range of 6,820-6,850. Yesterday the JCI turned weak with RSI stochastics which tended to start falling from the overbought area.

"So, the JCI is expected to consolidate again in the range of 6,820-6,850 with a tendency to weaken," wrote Phintraco Sekuritas in his research.

From external, Phintraco Sekuritas explained, market participants are looking forward to the release of the US Trade Balance, which is estimated to have a deficit of 69 billion US dollars in February 2023. Meanwhile, the US Manufacturing Index is expected to increase to 53.3 in March 2023 from 50.1 in February 2023.

"This raises concerns that the Fed still has the opportunity to raise the benchmark interest rate even though there is potential for a slowdown in economic growth," explained Phintraco Sekuritas.

Phintraco Sekuritas explained that profit taking on energy stocks after the oil price rally held the JCI movement on Wednesday. On the other hand, the decline in domestic inflation to 497 percent yoy in March 2023, builds expectations that Indonesia's inflation is still relatively stable amid the potential for increased public consumption amid the tendency to increase oil prices ahead of Eid Al-Fitr.

In line with the above, Phintraco Sekuritas added, the Rupiah exchange rate was recorded to have weakened 0.22 percent at the level of Rp14,932 compared to the previous day's closing which was at Rp14,899 per US dollar and was the largest weakness in the Asian market.

Phintraco Sekuritas recommends selected stocks, including CTRA, SSIA, BIRD, BRIS, ITMG and TAYS.