JCI expected to be mixed on lack of strong incentives
JAKARTA (TheInsiderStories) - The Indonesian stock market is expected to trade mixed today, with buying interest in selected stocks would offset falls elsewhere. The falls of some regional markets and Wall Street on Friday are likely to weigh on market sentiment.
On Friday, the Jakarta Composite Index (JCI) closed in green zone after falling in the morning trade. The JCI closed up 8.722 points or up 0.18 percent at 4,823.568 points, while the LQ45 Index edged up 3,049 points or up 0.37 percent at 834.607.
On Friday, Wall Street ended lower ahead of OPEC meeting at the weekend. The OPEC meeting failed to significant decision that sent crude oil price to fall. This is not a good news for energy and mining stocks.
Reza Priyambada, head of research of NH Korindo Securities Indonesia, said that technically the JCI is expected to trade within support level of 4,778-4,803 and resistance level of 4,852-4,869.
He said the market players may opt for ‘wait and see’ approach given lack of strong drivers to enter the market. “If market players push aside the wait and see attitude, then the JCI could rebound and the market could rebound,” he said.
Reza however warned that the market players should monitor the impact of the weakening of regional and global markets.
Stocks to Watch according to NH Korindo:
- SMBR, trading range: 425-640
- ELSA, trading range: 360-485
- VIVA, trading range: 350-416
- TLKM, trading range: 3345-3550
- BJBR, trading range: 890-980
- SSIA, trading range: 685-785
- UNVR, trading range: 42,000-44,500
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