The JCI Monday Has the Potential to Continue Correction, See Recommended Stocks

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Jakarta Composite Index (IHSG) has the potential to continue the correction to the range of 6.660-6.680 in today's trading Monday, June 19.

In his research, Phintraco Sekuritas said that technically, the Stochastic RSI tends to decline from the overbought area and the positive slope of MACD narrows. JCI movement was also influenced by a number of sentiments.

"From the outside, the market will anticipate the statement by the Head of the Fed, Jerome Powell, on Thursday, June 22," explained research by Phintraco Sekuritas.

As is well known, the Fed decided to maintain its benchmark interest rate at 5.25 percent and opened a signal that it would raise interest rates 2 more times in the remainder of 2023 because the US inflation level was still above the target.

From within the country, the market will also anticipate Bank Indonesia's decision to hold a Board of Governors meeting (RDG) on June 21-22 2023.

"Bank Indonesia is expected to return to maintaining its benchmark interest rate at 5.75 percent in June 2023, following the downward trend in inflation to 4 percent in May 2023 and Indonesia's relatively stable economic conditions," Phintraco wrote.

Based on the explanation above, Phintraco said investors can still pay attention to a number of rate-sensitive stocks such as BBRI and BRIS. In addition, stocks with further rebound opportunities such as AALI, TAPG, CPIN and JPFA can also be considered.

As is known, the JCI closed down 0.23 percent or fell 15 points to a level of 6.698 in weekend trading, Friday 16 June. The health, infrastructure, consumer non-cyclical, consumer cyclical, property, energy, transportation and financial sectors were observed to weaken, pushing the JCI in the negative zone.

The transaction value that occurred on Friday trading last week reached IDR 12.76 trillion. Foreigners recorded net sales of IDR 880.60 billion, while throughout 2023 foreigners recorded net purchases of IDR 17.75 trillion.