This line of sentiment will influence the JCI movement in September

Reporter: The first is blessed | Editor: Tendi Mahadi

KONTAN.CO.ID – JAKARTA. In the past month, the Composite Stock Price Index (JCI) has strengthened 4.49% to close at the level of 5,346.66 on Friday (28/8). This strengthening is predicted to continue in September 2020.

Philip Sekuritas analyst Anugerah Zamzami Nasr IHSG has the opportunity to continue strengthening in September 2020 towards resistance 5,450-5,550 and support 5.300.

Also Read: Analysts say that next week’s JCI has the potential for correction, see the sentiment

The sentiment driving the JCI was the continuation of the Covid-19 development and improvement in macroeconomic data such as the manufacturing index, inflation, consumer confidence index, automotive sales, retail and cement. “Data regarding the realization of the fiscal stimulus will also be in the spotlight,” Zamzami explained, Friday (30/8).

If viewed historically, continued Zamzami, during the last 20 years in September IHSG experienced 11 times green and nine times red. The opportunity to experience strengthening this month is as much as 55% and weakening by 45%. Yield Average (return) for the month of September for the last 20 years namely 0.25%.

Meanwhile, Pilarmas Investindo Sekuritas analyst Okie Ardiastama predicts the JCI will weaken this month with a moving range of 5,295-5,420. Especially because ahead of the presidential election of the United States (US), so the sentiment from abroad is quite large. “Moreover, last night Fed Tea conveyed its strategy towards monetary policy which was not well responded to by the market,” said Okie.

This is also a sentiment towards the decline in the US dollar (US) significantly after the statement made by Jerome Powell.

Also Read: Consider recommendations for consumer issuers amidst a flood of stimulus from the government

Meanwhile, from within the country, investors need to pay close attention to trade balance data, absorption of the national economic recovery budget and Bank Indonesia’s strategy.

Zamzami advises investors to look at stocks that drive JCI such as banking and consumer goods with large market values. Then they can also start to look at the basic industrial sector and agriculture. Meanwhile, Okie advised investors to pay close attention to commodity stocks.