Strengthening 0.4% on Friday (23/10), technically, JCI has the potential to rise again tomorrow

Reporter: Kenia Intan | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. The Jakarta Composite Index (JCI) strengthened 0.4% to 5,112.19 levels on Friday (23/10). Reliance Sekuritas Indonesia analyst Lanjar Nafi observed, stocks in the property sector and various industrial sectors led the gains until the end of the trading session.

It was recorded that the property sector stock index rose 3.66% with BSDE and ADHI being the pillars. Investors are again attracted to shares in the construction property sector because the average marketing sales data for property stocks has risen in the third quarter of this year.

Meanwhile, the miscellaneous industry sector index strengthened by 2.44%. ASII is the support because it is driven by sentiment regarding the distribution of interim dividends for the 2020 financial year performance in the last week of this month.

Also Read: Only two trading days, JCI was vulnerable to correction

For trading on Monday (26/10), Lanjar said, technically the JCI managed to confirm the pattern rebound on Thursday at the level lower bollinger bands with Friday’s strengthening testing the 50-day moving average.

The stochastic indicator is consolidating with a positive crossing near the oversold area with MACD consolidating in the middle oscillator area.

“So technically, the JCI has the potential to continue its strengthening at the beginning of the week with support and resistance at 5,085 to 5,156,” he wrote in a research received by Kontan.co.id, Sunday (25/10).

He further explained that next week’s trading which will last for only two days will be a weighting sentiment for the JCI movement. This is because investors usually tend to be conservative by taking steps when the stock market has a long holiday until it enters November.

As for some stocks that can still be technically observable such as DMAS, HMSP, GGRM, RALS, JSMR, AALI, and ICBP.

For your information, at the close of trading on Friday (23/10) the majority of stocks in Asia also closed higher, for example the Nikkei (+ 0.18%), TOPIX (+ 0.34%) and HangSeng (+ 0.54%). Lanjar observed that the strengthening was driven by the potential of the Trump administration to revive hopes for a package of economic recovery policies.

Not much different, the index in Europe also closed positive as the US index futures continued strengthening. Some of the stronger indices were the Eurostoxx index (+ 0.87%), FTSE (+ 1.29%) and DAX (+ 0.82%). Despite the strengthening at the end of this week, until the end of the month the market will have minimal sentiment, investors tend to wait for inflation data and growth in the PMI manufacturing index next month.