Here are the JCI projections and stock recommendations for Monday (6/12) trading

Reporter: Sugeng Adji Soenarso | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. The Composite Stock Price Index (JCI) closed lower by 45.31 points or 0.69% to 6,538.51 on Friday (12/3).

Pilarmas Investindo analyst, Okie Setya Ardiastama, assessed that the factor that weighed on the JCI at the end of last week was the negative sentiment of the new variant of the corona virus which caused concern for global stock market players.

For Monday (6/12), Okie projects that the JCI will continue to weaken. He estimates that the JCI will move with support at the level of 6,483 and resistance at the level of 6,616.

According to him, this week investors are still focused on data releases consumer confidence and also the realization of the national economic recovery (PEN). “Besides that, sentiment is still minimal,” he told Kontan.co.id, Friday (12/3).

Also Read: JCI weakened 0.35% in a week, IDX daily transaction value rose 5.75%

Phintraco Sekuritas analyst Valdy Kurniawan saw, Wall Street indexes ended last week with a weakness in trading Friday (3/12). The weakening was triggered by early reports showing that the omicron variant is more contagious than the delta variant and has been found in 38 countries. Concerns about the new variant of Covid-19 had an effect on the decline in US Non Farm Payrolls to the level of 210,000 in November 2021 from 546,000 in October 2021.

Obtaining negative external sentiment, the JCI is estimated to tend to weaken to test the psychological level of 6,500 on Monday (6/12). The support and resistance levels are at 6,450 and 6,630. Meanwhile, for the next week, the JCI is expected to fluctuate in the range of 6,450-6,630.

“Similar to global investors, market players in Indonesia are also affected by fears of a spike in Covid-19 cases and the potential for more aggressive monetary policy tightening by the Fed amid increasing risks of global supply chain disruption,” Valdy wrote in his research.

Domestically, the government is encouraged to extend the provision of value added tax (VAT) incentives for the property and automotive sectors until 2022. One of these incentives is aimed at maintaining the trend of recovering economic activity.

Also Read: Overshadowed by Omicron, look at the JCI projections in 2022

Meanwhile, an analyst at Artha Sekuritas, Dennies Christopher Jordan, sees that the weakening is technically limited and remains at the support at the 50 MA. The stochastic indicator is in the oversold area so there is an indication of a chance for a rebound in the short term.

“The movement is still overshadowed by concerns over the spread of the Omicron variant of the Covid-19 virus and its future impact on the economy,” he wrote in his research.

He estimates JCI will move with support 1 at 6,516 and resistance 1 at 6,580. Then, support 2 is at 6,494 and resistance 2 is at 6,622.

For Monday (6/12), Dennies recommends market participants to watch DMAS, MIKA, and TOWR stocks.

Meanwhile, Valdy suggested that market players could pay close attention to several issuers in sectors that have the potential to obtain positive catalysts from the extension of tax incentives, including CTRA, SMRA, BSDE and ASII.

“Bank stocks, especially large-cap banks, namely BBCA, BBRI, BBNI and BMRI can also be considered,” added Valdy.

Also Read: JCI is bearish, these are the stocks that were sold by foreigners this week