JCI Predicted to Strengthen on Thursday (24/2), Accumulation of Buying by Foreign Investors Lifts

Reporter: Ridwan Nanda Mulyana | Editor: Herlina Kartika Dewi

KONTAN.CO.ID – JAKARTA. The Composite Stock Price Index (JCI) moved in the green zone throughout Wednesday’s trading (23/2). JCI again perched through the 6,900 level and closed the trade with an increase of 58.06 points or 0.85% to 6,920.05.

Pandhu Dewanto, an analyst at Investindo Nusantara Sekuritas, sees that the JCI today has experienced a solid strengthening near the all-time high level. The current trend is supported by quite aggressive capital inflows.

“Of course it is very positive shown by foreign investors, because Indonesia has not experienced massive capital inflows for a long time. One of the main factors that makes the JCI attractive to foreign eyes is high commodity prices. This is the main source of Indonesia’s economic strength,” said Pandhu to Kontan. .co.id, Wednesday (23/2).

Erdikha Elite Sekuritas analyst Ivan Kasulthan confirmed that today’s strengthening of the JCI was supported by net foreign buying which reached Rp 966 billion.

The increase in the JCI occurred despite negative sentiments such as the Russia-Ukraine geopolitical issue and the Fed’s benchmark interest rate policy next month.

Also Read: JCI strengthens 0.85% to 6,920 on Wednesday (23/2), Prints All Time High again

Ivan estimates that the JCI on Thursday (24/2) will strengthen to a limited extent with a range of support levels at 6,880 and resistance at 6,950. Foreign buying is still a factor that is expected to make the JCI strengthen again.

In addition to geopolitical factors, Phintraco Sekuritas analyst Valdy Kurniawan sees the easing of restrictions on community activities in a number of states in the United States (US) and a number of countries in Europe as the basis for the view that the peak of the wave of Covid-19 transmission at the beginning of this year has passed.

In Indonesia, there is a downward trend in daily new cases, after the highest increase occurred in mid-February.

“This is one of the triggers for the accumulation of buying in bluechip stocks. In addition, the JCI is also supported by the strengthening of commodity stock prices, especially coal and CPO producers,” said Valdy.

Valdy estimates that the JCI in tomorrow’s trading will strengthen again and test the levels of 6,930-6,950, which is supported by expectations of continued accumulation of buying by foreign investors. Especially on bluechip stocks.

Meanwhile, Pandhu looked more optimistic. According to him, the JCI tomorrow is preparing to penetrate the all-time high level, which has the potential to test the 7,000 level. Moreover, the sentiment from foreign markets is currently quite positive, which on average has rebounded after a deep correction over the past week.

“Capital inflows will continue, at least until the end of February at the same time as MSCI’s rebalancing maturity date. It is estimated that Indonesia will receive an increase in weight, thanks to high commodity prices,” said Pandhu.

Also Read: JCI Rises 0.35% to 6,885.78 in Session I, Foreign Collections of BBCA, BBRI, and BBNI Shares

He advised market participants to pay close attention to stocks in the CPO and coal commodity sectors. Then technically, Pandhu saw a number of interesting stocks for trading Thursday (24/2), namely: ADRO, SSMS and INKP.

Meanwhile, Ivan advocates stocks that are in direct contact with crude oil commodities such as MEDC and ELSA. Then coal commodity stocks, namely ADRO, PTBA and INDY.

Not much different, Valdy also supports shares in the commodity sector other than banking. Interesting stocks for investors to watch include: ADRO, INDY, UNTR, BBCA, BBNI, SSMS and LSIP.