JCI is expected to weaken in early June 2021, this is the trigger

ILLUSTRATION. JCI is expected to weaken in early June 2021, this is the trigger

Reporter: Kenia Intan | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. Composite Stock Price Index (IHSG) closed in the green zone on the last trading day of May, Monday (31/5). JCI rose 98.847 points or 1.69% to 5,947.46.

Citing data from the Indonesia Stock Exchange (IDX), the majority of sectors in the stock exchange are moving higher. The most significant increase was recorded by the technology sector up to 8.66%. Then followed by the infrastructure sector and the raw material sector, which grew by 3.50% and 2.19% respectively.

Phintraco Sekuritas analyst Valdy Kurniawan observes that the JCI strengthening will not take place in early June trading, Wednesday (2/6). JCI is predicted to move tend to weaken with the level of resistance 5,930 and level support 5.750.

JCI movement is expected to be more limited by considering the indications overbought indicated by the Stochastic RSI. On the other hand, Monday’s closing level (31/5) is in the range of resistance 5.950.

Also Read: JCI rose 1.69% to 5,947, this is the top gainer stock in LQ45, Monday (31/5)

“Another factor that underlies this projection is the tendency of market participants to anticipate the strong US Manufacturing Index in May 2021 with accumulated purchases on Friday trade,” said Vady in research received by Kontan.co.id, Monday (31/5). .

Therefore, on Monday’s trading, significant accumulated buying was recorded by bank stocks which are relatively related to the economic recovery.

Meanwhile, domestic sentiment, market participants will anticipate higher inflation data and the manufacturing index in May 2021. These data can strengthen market players’ confidence in the achievement of the projection of economic growth in the second quarter of 2021 by the Indonesian Ministry of Finance, which is set at 7.1% yoy to 8 ,3% yoy.

For trading on Wednesday (2/6), Valdy still advises investors to pay close attention to banking stocks such as BBCA, BBNI, BMRI, BBRI, BRIS, and BTPS.