JCI is predicted to reach the level of 5,300 until the end of the year, this is the recommendation of the analyst

Reporter: Ika Puspitasari | Editor: Tendi Mahadi

KONTAN.CO.ID – JAKARTA. The Jakarta Composite Index managed to gain 0.65 percent to 4,958.77 on Monday (5/10) trading. In the last three months, the JCI has increased by up to 1.09%. However, if calculated from the beginning of the year, the JCI was still down 21.29%.

Head of Research Analyst FAC Sekuritas Wisnu Prambudi Wibowo sees the JCI still has a chance to strengthen in the final quarter of this year. He projects that the JCI can crawl up and reach the level of 5,200 to 5,300 by the close of 2020.

Wisnu said there were a number of sentiments that drove the JCI to reach this level. First, related to the realization of the National Economic Recovery program (PEN). As of September 28, 2020, the actual absorption of the PEN program was recorded to have grown by 43.8% or reaching Rp. 304.62 trillion from the PEN ceiling this year of Rp. 695.2 trillion.

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“Even though there is not half of this, we see that in the fourth quarter the realization of PEN should be even faster. So, the pressure on the economy will be lighter in the fourth quarter,” he said when contacted by Kontan, Monday (5/10).

Furthermore, if the Government’s target related to Covid-19 vaccination at the end of this year is true, it could also raise the JCI movement. In addition, projections for global economic conditions that were getting better in the fourth quarter than in the second quarter, which caused many countries to experience recession, also colored the JCI movement.

Predictions for the strengthening of the JCI are also inseparable from this phenomenon window dressing and santa claus rally at the end of the year. Even in the midst of the Covid-19 pandemic, Wisnu said there was still room for phenomena window dressing. According to him, developments related to the Covid-19 vaccine also determine how much window dressing that can happen.

In the midst of a potential strengthening of the JCI, Wisnu said several sectors were still interesting to observe, for example, the telecommunications and consumer sectors. He explained that these two sectors will still be one of the pillars of the index’s movement in the fourth quarter and have the opportunity to continue strengthening.

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Wisnu favored TLKM shares from the telecommunications sector and GGRM shares from the consumer sector. “If associated with window dressing and santa claus rally, TLKM and GGRM This has consistently strengthened at the end of the year for the last 5 years, “he added.