JCI is predicted to strengthen along with the certainty of the winner of the US presidential election

ILLUSTRATION. The Composite Stock Price Index (JCI) is predicted to continue its increase in trading Monday (9/11).

Reporter: Nur Qolbi | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. The Composite Stock Price Index (JCI) is predicted to continue its increase in trading Monday (9/11). As a reminder, the JCI strengthened in the last two trading days of last week by 3.04% and 1.43%, respectively, so it was perched at the level of 5,335.53.

Indo Premier Sekuritas Mino analyst predicts, JCI will move higher with support at 5,275 levels and resistance at 5,395. “The driving force is the certainty of the winner of the US presidential election,” Mino said when contacted by Kontan.co.id, Friday (6/11).

Not much different, Valdy Kurniawan, Phintraco Sekuritas analyst also estimates, JCI will strengthen with support at 5,240 and resistance at 5,375. Technically, the JCI strengthened on Friday (6/11) trading golden cross between the MA20 and MA50 indicators, which is a pretty strong signal of a potential occurrence bullish continuation.

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Meanwhile, fundamentally, one of the main focuses of market players in Indonesia is the US presidential election. In addition, the Fed decided to keep the benchmark interest rate at 0.25% on Friday (6/11). Following this decision, the rupiah exchange rate strengthened quite significantly to the range of Rp 14,200 per US dollar on Friday afternoon.

Then, from within the country, market players responded positively to the data on Indonesia’s economic growth in the third quarter of 2020 which was 5.05% higher than the previous quarter. “Even though the annual contraction is 3.49%, it is better than the realization in the second quarter of 2020, which contracted by 5.32% year on year,” said Valdy.

According to him, stocks consumer goods, such as PT Indofood CBP Sukses Makmur Tbk (ICBP), PT Indofood Sukses Makmur Tbk (INDF), PT Kalbe Farma Tbk (KLBF), and PT Unilever Indonesia Tbk (UNVR).

Investors are also advised to pay close attention to the shares of PT Bank Mandiri Tbk (BMRI), PT Telekomunikasi Indonesia Tbk (TLKM), and PT Jasa Marga Tbk (JSMR).