Lots of Positive Sentiment, JCI Breaks Level 7.020.19 This Morning

JAKARTA, KOMPAS.com – Price Index Share combined (IHSG) moved in the green zone at the beginning of trading on the Indonesia Stock Exchange (IDX), Thursday (17/3/2022). Likewise with rupiah which strengthens on spot market trading.

Reporting from RTI data, at 09.07 WIB, the JCI was at the level of 7,020.19, an increase of 27.7 points (0.4 percent) compared to the previous close at the level of 6,992.39.

A total of 264 share advanced in the green zone and 101 stocks in the red zone, while another 182 stocks were stagnant. The transaction value to date has reached Rp 1.3 trillion with a volume of 1.5 billion shares.

Also read: JCI Will Test Level at 7,000? Check out the Stock Recommendations

Asian stocks were green with gains in the Nikkei 2.9 percent, Hong Kong’s Hang Seng 4.01 percent, the Shanghai Composite 1.3 percent, and the Straits Times 1.1 percent.

Wall Street this morning also closed in the green with the Dow Jones Industrial Average (DJIA) rising 1.5 percent, the S&P 500 gaining 2.2 percent, and the Nasdaq Composite up 3.7 percent.

Previously, Panin Sekuritas analyst William Hartanto assessed that the JCI would test resistance at level 7,000 with a catalyst net buy foreign investors. He considered that the opportunity to break through the 7,000 level by the end of the week was quite large after the JCI managed to break through resistance closest to 6,974 in yesterday’s trade.

Also read: Wall Street Responds to Fed Rate Increases, JPMorgan, Starbucks and Boeing Stocks Soar

“Yesterday, JCI managed to penetrate resistance nearest 6,974. Today JCI has the potential to move mixed tends to strengthen in range 6,900-7,000,” William said in his recommendation.

The rupiah exchange rate against the US dollar in the spot market this morning strengthened. Reported from BloombergAt 09.02 WIB, the rupiah moved at the level of Rp. 14,288 per US dollar, or up 24 points (0.17 percent) compared to the previous closing at Rp. 14,311 per US dollar.

Money market observer Ariston Tjendra said the strengthening of the rupiah occurred in response to the results of the US Central Bank meeting which were in line with expectations. The announcement by the Fed to raise the benchmark interest rate by 25 basis points was anticipated by the market earlier.

“The rupiah exchange rate may strengthen today following the positive market sentiment towards risky assets seen this morning. Even though the US Central Bank announced monetary tightening, the US dollar did not immediately strengthen because this result was in line with expectations and had been anticipated by the market beforehand,” he said. Ariston to Kompas.com.

Domestically, Indonesia’s trade balance surplus, which was higher than market expectations and the relaxed PPKM situation, could help strengthen the rupiah.

Ariston predicts today’s rupiah will move in the range of Rp 14,280 per US dollar to Rp 14,320 per US dollar.

Also read: Control Prices and Inflation, The Fed Raises Interest Rates 25 Basis Points

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