JCI Trying To Crawl Back Up, Check Out Stock Recommendations

JAKARTA - The Composite Stock Price Index (JCI) is projected to strengthen in today's trading, Thursday March. Phintraco Sekuritas in its research, estimates the JCI will move in the resistance range of 6,370, pivot 6,270, and support 6,100.

Phintraco Sekuritas explained that the JCI today has the opportunity to continue rebounding by testing the level of 6,330-6,370. JCI is still supported by monetary stimulus in the form of increasing its macroprudential liquidity policy by Bank Indonesia to IDR 375 billion from the realization until the second week of March 2024 at IDR 291.8 trillion.

"This condition will greatly help banking liquidity which tends to be stricter since the fourth quarter of 2024," wrote Phintraco Sekuritas.

Phintraco Sekuritas added that the policy triggered a weakening of the Rupiah exchange rate to around Rp. 16,520 per US dollar (0.61 percent) on Wednesday afternoon. However, this policy is part of support for fiscal stimulus, one of which is the program of 3 million houses.

"Pasar hopes that the policy can have a positive impact on Indonesia's economic outlook, at least in the medium term," said Phintraco Sekuritas.

The market also tends to normalize the biased heuristic conditions that occurred on Tuesday, March 18 due to a series of circulating issues that affected market psychology on that day. The chairman of the National Economic Council, Luhut Binsar Pandjaitan, stated that the President of Indonesia, Prabowo Subianto, plans to meet with stock investors.

Meanwhile, from external, Phintraco Sekuritas said, Wall Street turned stronger, led by Nasdaq which jumped 1.41 percent on Wednesday 19 March. The Fed did hold the benchmark interest rate back at 4.25-4.5 percent, but did not rule out the possibility of cutting the benchmark interest rate twice in 2025.

"This statement is relatively more dovish than the expectations of some market players who are starting to worry about the opportunity to cut just once in 2025," explained Phintraco Sekuritas.

A more dovish view of the Fed above sparked a decline in US bond yields to 4.247 percent on Wednesday from around 4.28 percent earlier this week.

The stocks recommended by Phintraco Sekuritas are BMRI, EMTK, ICBP, INDF, and RAJA.

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