The Insider Stories Morning Notes - JCI may extend gains

JCI may extend gains, Wall Street gains may weigh on sentiment

JAKARTA (TheInsiderStories) - Indonesian stock market is expected to go up today, extending yesterday’s gains led by selected big caps. The rise of Wall Street overnight may weigh on the market sentiment.

On Wednesday, the Jakarta Composite Index (JCI) closed 10.158 up points or up 0.21 percent at 4,868.230 points. While, the LQ45 index ended up 0.488 points or up 0.06 percent at 845.969 points. Among sectors that went up were mining and agriculture.

Gainers led losers 186 to 116, with 90 shares unchanged. The transaction value reached Rp4.2 trillion.

Overnight, Wall Street stocks closed higher. Dow Jones index gained 112.73 points or up 0.64 percent at 17,716.05, while S&P 500 index rose 21.49 points or up 1.05 percent at 2,066.66. Nasdaq rose 76.78 points or up 1.59 percent at 4,920.72.

Reza Priyambada, head of research of NH Korindo Securities Indonesia, said he expects the JCI trade within support level of 4,845-4,852 points today and resistance level at 4,886-4,892 points.

He said the JCI may test the resistance level again today, before it could go up. Yesterday, the JCI broke the resistance level, but came off high again. He expects the index to trade in green zone today.

Meanwhile, William Surya Wijaya, an analyst at PT Asjaya Indosurya Securities, said the JCI is likely to hover between 4,837 and 4,909 points today. “The chance for the index (JCI) to break the the resistance level is greater if the market trades above strong support level of 4,837.

Among stocks to watch today, according to NH Korindo, are ISSP, SILO, LSIP, EXCL, ISAT, GIAA and MEDC.
- MEDC

Stocks to watch according to Indosurya: BBNI, JSMR, TLKM, AALI, BWPT, WIKA, SMCB, PWON and ASRI. (*)