Slumping 2% in a week, this is the projection of the JCI next week

ILLUSTRATION. A cleaning officer passes in front of a screen of stock trading movements on the Indonesia Stock Exchange, Jakarta, Friday (4/9/2020). The Composite Stock Price Index or JCI closed in the red zone at the end of trading this week, namely at the level of 5,239.85 or down 4

Reporter: Nur Qolbi | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. Composite Stock Price Index (IHSG) varied in the last five trading days. Even so, cumulatively, JCI fell 2% during the week to the level of 5,239.85 from the previous level of 5,346.66.

Sucor Sekuritas analyst Hendriko Gani assessed that the decline in the JCI was caused by several factors, such as the issue of recession in the third quarter of 2020, slowing economic recovery, the number of corona cases which is still increasing high, and the slow handling of corona in Indonesia.

“There is rebalancing on the MSCI index as well capital outflow which is quite large this week is also a factor causing the decline in the JCI, “said Hendriko when contacted by Kontan.co.id, Friday (4/9).

For next week, Hendriko predicts, JCI has the opportunity to move varied with a tendency to strengthen in the range of 5,156-5,461.

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According to him, the sentiment that influenced the JCI movement was still related to the development of economic recovery, handling of the corona case, and the release of economic data, namely foreign exchange reserves, consumer confidence index (IKK), and retail sales in July 2020.

On the other hand, Pilarmas Investindo Sekuritas analyst Okie Ardiastama predicts, for next week, JCI has the potential to move limited to the trading range 5,160-5,384.

The sentiment for the movement came from the release of the US initial jobless claim data, which has become the benchmark for future decision making by the Fed.

“Apart from that, from within the country, the movement of the rupiah and the release of retail sales data are deemed sufficient to have a role in the next week,” said Okie.

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