The JCI on Wednesday is Predicted to Strengthen Along With Some Positive Sentiment

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (IHSG) is predicted to strengthen in today's trading, Wednesday, June 7, after weakening 0.22 percent or 14.51 points yesterday to a level of 6,618.92.

Binaartha Sekuritas Technical Analyst Ivan Rosanova predicts that the JCI will potentially strengthen this Wednesday if it can be above the nearest support, namely at the 6.600 level and resistance at the 6.700 level.

Along with that, Ivan observes that coal prices are starting to rebound. Apart from that, BUMN Karya shares also strengthened.

"Banking issuers are experiencing a rebound and several other sectors such as raw goods," said Ivan in his research.

Meanwhile, Phintraco Sekuritas, in its research, observed a long upper shadow that formed ahead of Tuesday's close indicating that there was considerable selling pressure.

"There is no golden cross of the Stochastic RSI and MACD as validation of indications of a further rebound," explained research by Phintraco Sekuritas.

According to Phintraco, the JCI will move sideways in the 6.600-6.680 range on Wednesday with support at the 6.600 level and resistance at the 6.730 level.

This movement was influenced by sentiments from within and outside the country. Domestically, the main sentiment stems from the continuing downward trend in inflation to 4% YoY in May 2023 which is lower than market estimates of 4.22% YoY.

This condition builds confidence that BI will hold the benchmark interest rate at 5.75 percent. In addition, stocks that are sensitive to interest rate movements also strengthen, including the property & real estate sector.

As a result, Phintraco Sekuritas recommends SMRA, CTRA, PWON, BSDE, and ASRI shares to be considered by investors.

The external sentiment came from the market which will pay close attention to the release of China's trade balance data, export and import value which is expected to fall YoY in May 2023.

However, Saudi Arabia's plan to increase production volume cuts starting July 2023 has the potential to encourage continued rebounds in commodity prices.