JCI Is Predicted To Strengthen Slightly On Monday, Check Out Stock Recommendations From Analysts

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is predicted to strengthen slightly in today's trading, Monday, June 12, after last weekend's rise of 0.42 percent or 27.69 points to 6,694.02. Within a week, the JCI strengthened 0.92 percent.

Phintraco Sekuritas in his research said that the JCI movement this week was relatively strong driven by projections for Indonesia's economic growth. The World Bank revised Indonesia's economic growth projection in 2023 from 4.8 percent on an annual basis to 4.9 percent on an annual basis (YoY).

"This builds positive expectations for Indonesia's economic growth above 5 percent YoY in 2023, especially in terms of household consumption, which can be maintained," explained the research of Phintraco Sekuritas.

The trend of reducing inflation in May 2023 is at 4 percent YoY, which is down from 4.33 percent YoY in April 2023.

However, Indonesia's manufacturing index also fell to 50.3 in May 2023 from 52.7 in April 2023. The latest conditions are in line with the slowdown in global manufacturing activity," he explained.

Another sentiment that affected the JCI movement this week came from the decision of 6 Chinese state-owned banks to cut deposit rates on Thursday, June 8.

This has the potential to encourage China's central bank to help cut the benchmark interest rate. The expansionary policy builds expectations for the recovery of economic activity in China, "explained research on Phintraco Sekuritas.

JCI is projected to strengthen slightly at the start of trading this Monday with the closest target level being to test resistance at 6,730. One of the positive sentiments comes from the revised projection of Indonesia's economic growth from 4.8 percent YoY to 4.9 percent YoY in 2023 by the World Bank.

Meanwhile, from the external side, positive sentiment stems from the potential for cutting the benchmark interest rate by the Fed after cutting deposit interest rates by major state-owned banks in China this week.

In addition, the market also anticipates the results of the FED FOMC on Wednesday, June 15, which is expected to raise the benchmark interest rate by 25 bps.

JCI will move at the resistance level of 6,730 and support at 6,600, with a pivot at 6,680. The stocks that can be considered this Monday include BMRI, BBRI, BBCA, GOTO, KLBF, WIFI, MTEL, and TOWR.