Up 0.98% last week, JCI has the potential to continue strengthening

ILLUSTRATION. The Jakarta Composite Index (JCI) eroded 0.03 percent to 5,103.41 on Friday (16/10). However, the JCI increased 0.98% for a week.

Reporter: Kenia Intan | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. The Jakarta Composite Index (JCI) eroded 0.03% to 5,103.41 at the close of trading Friday (16/10). Despite weakening, the JCI movement in the last week (12-16 October 2020) rose 0.98%. Just so you know, at the close of trading last week, Friday (9/10), the JCI was at the level of 5,053.66.

For next week (19-23 October 2020), Director of Anugerah Mega Investama Hans Kwee estimates that the JCI will continue to strengthen but is limited.

Support The JCI is at the level of 5,067 to 5,001 and resistance at the level of 5,182 to 5,200, “explained Hans Kwee in a research received by Kontan.co.id, Sunday (18/10).

Investors are advised to be alert if the JCI strengthens. However, if it tends to be corrected, investors can buy on weakness.

Also Read: JCI has the potential to strengthen next week, see the driving sentiment

In the research received by Kontan.co.id, Hans Kwee explained that global sentiments are likely to raise the JCI movement next week. For example, the management of Pfizer Inc filed for a Covid-19 vaccine license with the United States (US) authorities in early November 2020.

The Pfizer vaccine is the result of joint development with BioNTech in Germany. Amid the continued growth of Covid-19 cases, the development of this permit has become a driving sentiment at the weekend for European and American exchanges.

Market participants are also looking forward to fiscal stimulus in the US. US Treasury Secretary Steven Mnuchin has spoken to US House Speaker Nancy Pelosi that President Donald Trump will consider increasing the amount of aid to the US $ 1.8 trillion fiscal stimulus package previously proposed.

“There is hope of a fiscal stimulus package agreement to push the US economy out of recession,” said Hans Kwee as written in his research.

Just so you know, previously the US President had asked the congress to pass the Covid -19 assistance bill minus the remaining funds from the expired SME credit program. The White House spokesman said Republican Senate members would go along with Trump’s wishes.

Meanwhile, the presidential election of the United States was another driving sentiment. There is hope that Democratic candidate Joe Biden will win the presidential election on November 3, 2020. Several polls put Biden in the lead over Republican candidate Donald Trump.

“This victory will encourage a larger economic stimulus package and reduce the potential for a trade war with China,” explained Hans Kwee.

On the other hand, corporate taxes in the US are also expected to rise. This triggered the weakening of the US dollar so that it would have a positive impact on emerging market including Indonesia.

Also Read: Foreign investors sell out these shares when the JCI is down, Friday (16/10)

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Reporter: Kenia Intan
Editor: Khomarul Hidayat

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