These are Stock Options to Observe, JCI Predicted to Strengthen Monday (8/1)

Reporter: Kenia Intan | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. The Composite Stock Price Index (JCI) closed in the green zone at the weekend, Friday (7/1). JCI rose 47.965 points or 0.72% to 6,701.316.

Citing data from the Indonesia Stock Exchange (IDX), 7 of the 11 stock sectors showed strengthening. The highest increase was felt by the energy sector stock index up to 2.01%. Followed by the industrial sector which rose 1.22%. The transportation and logistics sector also rose 1.17%.

Phintraco Sekuritas analyst Valdy Kurniawan observed that Wall Street indices continued their weakness in trading Friday (7/1). The S&P 500 fell for the fourth straight day. The Nasdaq fell the most (0.9%) as the sell-off in technology stocks continued. This was influenced by the continued increase in the US 10-year Bond Yield which passed the 1.8% level on Friday (7/1).

The increase was triggered by the Fed’s plan to normalize the balance sheet along with the normalization of the Fed Rate in 2022.

Also Read: Check out the sentiment that will move the JCI this week

Although overshadowed by the weakening of global indices, the JCI still has the opportunity to continue its strengthening. JCI has the potential to test 6,720 resistance on Monday (10/1).

“For this week, the JCI is estimated to move in the range of 6,630 to 6,720,” he said in research received by Kontan.co.id, Sunday (9/1).

Meanwhile, selective buying of bluechip stocks, especially in the financial sector, is expected to continue next week. One of the encouraging sentiments was the release of data on Indonesia’s foreign exchange reserves of US$ 144.9 billion as of the end of December 2021.

The foreign exchange reserves are sufficient to finance 8 months or 7.8 months of imports and the payment of the government’s external debt, far above the international adequacy standard of around 3 months of imports. In response to this data, the rupiah exchange rate also strengthened 0.24% to a level of Rp. 14,355 per US dollar on Friday afternoon (7/1).

Considering these conditions, Valdy advised investors to scrutinize banking stocks such as ARTO, BBCA, BBRI and BMRI. Market participants can also pay attention to a potential rally in energy stocks, especially in coal producers, such as ADRO, HRUM, PTBA, and ITMG.

Also Read: Still Overshadowed by Omicron Spread, Here’s JCI Projection Monday (10/1)