Reporter: Avanty Nurdiana | Editor: Avanty Nurdiana
KONTAN.CO.ID – JAKARTA. The Composite Stock Price Index aka IHSG today (19/10) will weaken again. The JCI closed with a slight correction of 0.03% at the level of 5,103.41 on Friday, October 16, 2020.
Lanjar Nafi Analyst of Reliance Sekuritas estimates that the JCI movement today (19/10) is technically moving lower. This seems to be stuck at the Pivot Fibonacci Ratio support level, but the movement still returns to the 5-day moving average support level.
According to Lanjar, the stochastic indicator dived after confirming a deadcross in the overbought area with the MACD indicator which looks negative divergence with the histogram. “So we still estimate the JCI is vulnerable to pressure,” he explained.
In trading earlier this week, Lanjar said, the JCI movement today will be in the range of support and resistance at 5,080 – 5,110. Stocks that can be observed technically include ASII, ICBP, INDF, SIDO, SMGR, UNVR.
JCI on Friday (16/10) closed slightly lower 1.73 points to the level of 5,103.4 after having weakened to -0.74% in the first session. JCI was negatively impacted by the uncertain sentiment of US fiscal stimulus which also dragged down most Asian stock markets.
However, Lanjar explained, JCI was able to rebound at the end of the trading session with stocks in various industrial sectors up 2.89% and mining up 0.75% leading the way. ASII shares rose 4% and ADRO rose 5.6% to become the leader of the JCI movement.
The Astra group’s car sales, which have shown an increase in the last few months, have become a catalyst. The increase in monthly sales in September 2020 continues the trend of increasing monthly sales of Astra group cars in the domestic market since June 2020.
The Omnibus Law Employment Creation Law is reported to be a positive catalyst for mining issuers where Article 128A states that activities to increase the added value of coal can be in the form of imposition of 0 percent royalties. Foreign investors made a net sale of Rp 494.33 billion.
The majority of Asian stock exchanges experienced weakness. Asian bourses due to the uncertainty of fiscal stimulus in the US made US index futures lead the decline in the majority of Asian indexes. China‘s trade balance data with export activities that were still in the negative zone were also the main factors for the decline.
European markets closed the weekend trading higher. Investors are getting positive wind of watching negotiations between the UK and the European Union which will continue next week after Boris Johnson said he was confident of his trade deal.
Lanjar said that next week investors will still focus on the development of the US fiscal stimulus agreement and the trade balance. In addition, export-import activities in Japan, GDP growth and retail sales in China.
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Reporter: Avanty Nurdiana
Editor: Avanty Nurdiana