JCI seen higher, profit taking could limit gains
JAKARTA (TheInsiderStories) - Indonesian shares are expected to trade higher today on selective buying in banking and infrastructure stocks, however the gains could be capped by profit taking elsewhere ahead of weekend, analysts say.
On Thursday, the Jakarta Composite Index (JCI) closed up 26 points or up 0.54 percent at 4,903.09. Transaction values reached Rp4.9 trillion. The central bank’s decision to hold BI rate boosted sentiment on banking stocks. Among stocks that led the gains were Unilever, BRI, Bank Mandiri, Telkom, Semen Indonesia (SMGR) and Wijaya Karya.
On Thursday, the central bank decided to keep BI Rate unchanged at 6.75 percent.
Dow Jones Index closed down 113.75 points at 17,982.52 points or down 0.63 percent. Brent price fell 2.8% to $44.53 per barrel, while WTI fell to $43.18 per barrel.
William Surya Wijaya, Head of Research of Asjaya Indosurya Securities, said technically the JCI would trade within support level of 4,856 points and resistance level of 4,926 points. He said if the resistance level is broken, the JCI has the opportunity to move upward.
“The capital inflow coupled with stable economy and (slight) recovery of commodity prices will bring positive impact in certain stocks,” he said, adding that this could lift JCI to go up today.
Some analysts however expect the market to be flat as some players could cash out ahead of the weekend.
Today’s menu, according to Indosurya :
- KAEF
- AKRA
- BBNI
- TLKM
- WIKA
- JSMR
- PGAS
- BWPT
- SMCB
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