The Insider Stories Morning Notes - JCI expected to be mixed on technical rebound

JAKARTA (TheInsiderStories) - Indonesian shares are expected to trade in positive territory today on technical rebound following recent days decline. The gains however could be capped on sell-off in selected stocks on concerns on volatile global markets.

On Monday, the Jakarta Composite Index (JCI) closed lower 39 points or down 0.7 percent at 5,577 points, after hovering between 5,577-5,631 points. More foreign investors bought stocks than those who sold their shares, as reflected in net buy of Rp29 billion. Out of 10 sectoral indices, seven weakened and three rose.

The total transaction reached Rp 5.61 trillion, comprised of transaction in regular market (Rp3.64 trillion), negotiation market (Rp1.97 trillion and cash transaction (Rp1.02 billion). As many as 121 stocks rose, 207 declined and 111 stocks were unchanged.

Asjaya Indosurya head of research William Surya Wijaya expects the JCI to trade above support level of 5,524 points and below resistance level of 5,698 points today. “The movement trend of the JCI still shows potentiality to go up supported by stable economic condition and relatively positive commodity price development,” he said. This, he said, shows that the JCI still has the upside potentials in the long run.

“Today, JCI still has the potential to strengthen,” he said.

Asjaya Indosurya said today’s stocks to watch are including:

- ICBP

- ANTM

- ADHI

- KLBF

- PTPP

- PGAS

- UNVR

- GGRM

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