Falling 2.06% to the level of 5,992, this is the JCI projection on Friday (20/8) trading

Reporter: Kenia Intan | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. Composite Stock Price Index (IHSG) closed in the red zone on Thursday (19/8). JCI recorded a decline of 125.828 points or 2.06% to a level of 5,992.32.

Citing data from the Indonesia Stock Exchange (IDX), the majority of sectors on the stock exchange were in red. The deepest decline was felt by the financial sector up to 2.45%. After that, the energy and health sectors were followed by 2.42% and 2.27% respectively.

Artha Sekuritas Indonesia analyst Dennies Christopher Jordan observed that the weakening was triggered by concerns from market participants because the Fed said it would conduct tapering by reducing bond purchases this year. Meanwhile, domestically, Bank Indonesia set the interest rate at the level of 3.50%.

For trading on the weekend, Friday (20/8), JCI is predicted to continue weakening with support levels at 5,929 and 5,867. The resistance level is at 6,082 to 6,173.

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“Technically breakdown support with candlestick shape long black body indicates the potential for further weakness,” said Dennies in research received by Kontan.co.id, Thursday (19/8).

According to him, the movement will still be influenced by investor concerns about tapering. On the other hand, the development of Covid-19 cases, especially daily cases in the United States, has again increased significantly.

Similarly, the CEO of PT Indosurya Bersinar Sekuritas, William Surya Wijaya, observed that the JCI will continue to weaken. “The movement will still be under pressure in the medium term,” he explained in research received by Kontan.co.id, Thursday (19/8).

However, in the long term, the JCI has the potential to increase.

On Friday’s trading (20/8), William projected that the JCI would be under pressure with a range of 5,872 to 6,123 levels. The stocks he observed were HMSP, WIKA, WTON, ASRI, PWON, APLN, AALI, UNVR, SMRA, and CTRA.