The decline in global stock exchanges will put pressure on the JCI next week

Reporter: Nur Qolbi | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. Composite Stock Price Index (IHSG) fell 0.31% to the level of 5,128.23 to close this week’s trading on Tuesday (27/10). This week’s trading lasted only two days due to a long holiday.

For next week, analysts predict, the JCI will tend to weaken due to the decline in global markets.

Pilarmas Investindo Sekuritas analyst Okie Ardiastama said the increase in the JCI this week was driven by positive sentiment from the issuer’s financial performance. “Although several issuers big caps recorded a decline in profit, but we think investors tolerate the decline in profit, “he told Kontan.co.id, Tuesday (27/10).

Meanwhile, Dennies Christoper Jordan, Artha Sekuritas analyst, said the JCI movement this week shows that investors tend to be more conservative ahead of the United States (US) election next week. The stock market also tends to be quiet ahead of the long holiday from Wednesday (28/10) to Sunday (1/11).

For next week, Dennies predicts, JCI movement will tend to weaken due to the decline in global stock markets. The stock market is also expected to be volatile ahead of the US elections on November 3, 2020.

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On the other hand, investors will still monitor several issuers’ financial reports per quarter III-2020, especially large cap issuers. “The improved performance of listed companies is expected to support the JCI movement,” said Dennies.

Okie also predicts that market players will still focus on several issuers whose financial reports will be included in the release schedule. This will be the main concern of market players to measure management’s ability to maintain performance amid the impact of the Covid-19 pandemic.

Throughout the next week, Dennies projected that JCI would move slightly higher support at level 5060 and resistance at 5,212. Meanwhile, on Monday (2/11), JCI will gain limited strength in the range of 5,112-5,183.

On the other hand, Dennies predicts, JCI on the first trading day next week will move lower support 1 of 5,117, support 2 of 5,090, resistance 1 in 5,163, and resistance 2 of 5,182.

Also Read: JCI fell 0.31% to 5,128 on Tuesday (27/10), foreigners again scored a net sell