The JCI will consolidate in April 2021, this is the reason

ILLUSTRATION. The JCI will consolidate in April 2021, this is the reason

Reporter: Nur Qolbi | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. Composite Stock Price Index (IHSG) tends to move in consolidation (sideways) in early April 2021.

In the past week, the JCI only rose 0.99%, while the Japanese Nikkei index increased 1.29%, the South Korean Kospi index + 1.43%, the United States (US) Dow Jones index + 1.95%, and the stock index. main Australian + 2.45%.

Head of Research at FAC Sekuritas Indonesia Wisnu Prambudi Wibowo said, rebound small numbers that occurred in the JCI were due to the not yet dominant domestic sentiment. The dividend distribution season which began this month is also considered not strong enough to make the JCI to rally.

In addition, the government policy that prohibits going home on May 6-17, 2021 is predicted to hinder the rate of economic growth. Market participants are also worried about it capital outflow and inflation due to increases yield US government bonds in line with the stimulus that continues to be rolled out by the Joe Biden administration.

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“At the same time, market players are also inclined wait and see awaiting the release of issuers’ financial reports and economic growth in the first quarter of 2021, “said Wisnu when contacted by Kontan.co.id, Sunday (11/4).

Main Services Analyst at Capital Sekuritas Chris Apriliony added, the consolidation of the JCI in early April 2021 was due to the weakening of the rupiah exchange rate and companies that tended to distribute smaller dividends than the previous year.

“This makes investors less enthusiastic about the dividend distribution. In fact, some tend to be disappointed that they sell stocks which are expected to pay big dividends,” said Chris.

According to Chris, currently, the JCI tends to move sideways in the direction of bearish with level support at 5,850 and resistance at 6,210. The strengthening of the rupiah exchange rate is a sentiment that can boost the JCI going forward.

Meanwhile, Wisnu sees the JCI will move in consolidation in the next one to two months. He predicts that the JCI will only move up after Lebaran in line with economic activity that has the potential to run even faster as the vaccination program continues.

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According to him, an even faster acceleration of the capital market will only occur in the third quarter entering the fourth quarter of 2021. “In the short term, resistance which will be tested is at the level of 6,240 with support 5,900. If support was successfully penetrated, then support then at the 5,800 level, “said Wisnu.

In line with the still high volatility of the JCI, Wisnu advised market players who prefer stock trading to increase their amount of funds while lowering risk limits. If the traded shares fell 30% -40%, Wisnu advised para trader for cut loss aja.