JAKARTA (TheInsiderStories) - The Composite Stock Price Index (JCI) is likely to continue strengthening and will move in the range 5,245 and resistance 5,356, said Reliance Securities analyst Lanjar Nafi. According to him, the shares could considered today are INCO, INDY, RALS, BRPT, SMBR, GJTL.
Meanwhile, Head of Research at Universal Broker Indonesia Satrio Utomo said, JCI movement still difficult to predict and the possibility of foreign capital outflow will continue until Donald Trump announce his working cabinet in the coming week. He added, JCI is still in a bullish trend, with a trading range support at 5,300 and 5,335.
On Thursday, JCI closed higher by 0.46% at a level of 5,325 against the previous closing (+ 0.94% mtd; + 0.54% ytd). A total of 168 stocks rose, 145 stocks declined, 36 stocks unchanged and 232 shares not experience trading.
Domestic investors bought sustain the increase in JCI, which leaves only the property and finance sectors that declined. Foreign investors recorded a net sell Rp91,6 billion in the regular market (net sell Rp371,9 M mtd; net sell Rp371,9 M ytd).
The rupiah today closed at * 13 342 per USD gained 0.80% * against the previous close (-1.02% mtd; -0.97% ytd).
On the money market, the Rupiah has appreciated 0.54% or 73 points to the position of Rp13,367 per US dollar after trading at around Rp13,296 - Rp13,385 per US dollar. Josua Pardede, economist at Bank Permata see the strengthening of the rupiah influenced by domestic and global sentiment.
From external, rising of EU inflation and the UK manufacturing sector makes US dollar correction and this is positive for Asian currencies, he said. He continued, the rupiah also benefited by government bond inaugural auction in 2017.
On Tuesday, government recoups about Rp 36.9 trillion in deals. This shows the market is optimistic about the economic condition of Indonesia.
The opening of the FOMC meeting minutes can withstand the strengthening of the rupiah today but Joshua predicted Rupiah can be corrected to US$ 13,325 to Rp 13,450.