IHSG Predicted to Strengthen Next Week, These Are the Supporting Factors

JAKARTA, KOMPAS.com – Composite Stock Price Index ( IHSG) is predicted to move higher in trading next week.

Director of PT Anugerah Mega Investama Hans Kwee said, JCI would strengthen with support at the level of 5.063 to 5,001 and resistance at the level of 5,135 to 5,182.

Several factors will affect movement JCI next week such as the development of additional fiscal stimuli and the development of elections in the United States.

“There are also concerns about the threat of a second wave of Covid-19 cases and company profit reports in the third quarter,” he said in his statement on Sunday (25/10/2020).

Also read: Check out the stocks that can be looked at in 2021

Apart from that, market players are also watching the potential growth Indonesian economy in the third quarter of 2020.

Government estimates that the Gross Domestic Product (GDP) will contract by 1 percent to 2.9 percent.

All components that make up the Gross Domestic Product (GDP) will experience contraction or negative growth in the third quarter.

Estimates of household consumption will fall by 1.5 percent to 3 percent, investment is also under pressure, with estimates ranging from minus 6.4 percent to minus 8.5 percent.

Growth exports are also estimated to experience contraction in the range of 8.7 percent to 13.9 percent. And imports are also still under pressure.

Meanwhile, for the whole of 2020 economic growth is estimated to be in the range of minus 0.6 percent to minus 1.7 percent.

“Despite the negative growth, Indonesia’s economic growth is far better than other countries facing the Covid-19 pandemic,” explained Hans Kwee.

Also read: Up 0.4 Percent, JCI Again Breaks the 5,100 Level

– .