IDX Composite Potentially Consolidates on Monday (4/3)

March 17, 2024, 11.32 PM | Reporter: Muhammad Musa

ILUSTRASI. Workers cross the digital screen of stock movements at the Indonesia Stock Exchange, Jakarta, Wednesday (13/3/2024). JCI managed to touch an all-time high record or All Time High (ATH) at level 7,435 in the first trading session on the first day of opening of the stock exchange during the month of Ramadan. BETWEEN PHOTOS/Akbar Nugroho Gumay/rwa.

JAKARTA COMPOSITE INDEX – JAKARTA. The IDX Composite (IHSG) has the potential to strengthen slightly in the support area of 7,288 and resistance of 7,355 on Monday (18/3). The JCI weakened by 1.42% or 105.26 points to the level of 7,328.05 on Friday (15/3).

MNC Securities analyst Herditya Wicaksana said the market is awaiting the release of China's industrial data. In addition, he said the market is also observing the yield of the US Treasury 10-year which has been strengthening for two days.

Muhammad Nafan Aji, an analyst at Mirae Asset Securities, added that the market is also awaiting the determination of the Fed Funds Rate (FFR) as well as the March dot plot. In addition, the market is also awaiting the Bank Indonesia Board of Governors Meeting (RDG BI) to determine the BI rate.

Phintraco Securities analyst Alrich Paskalis Tambolang stated the JCI has the potential to consolidate in the support area of 7,300-7,340 on Monday (18/3).

Alrich said the realization of the trade balance in February 2024, which fell significantly to US$ 0.87 billion from previously US$ 2.01 billion, was influenced by export data that fell by 9.45%. Meanwhile, imports grew significantly by 15.84% from previously 0.36% in January 2024.

"This week there is a decision on the benchmark interest rate by Bank Indonesia which is expected to remain at the level of 6%," Alrich told Kontan.co.id, Friday (15/3).

Alrich added global investors are also waiting for China's retail sales data which is expected to grow 5.2% YoY in January-February 2024 from previously 7.4% in December 2023. The consensus still represents market confidence in the increase in retail sales for 12 consecutive months.

"Meanwhile in the Eurozone, investors are awaiting the release of CPI Inflation data which is expected to grow 2.6% YoY in February 2024 from previously 2.8% in January 2024," continued Alrich.

Reliance Securities analyst Ayu Dian predicts that in this week's trading, the market will observe the interest rate decisions of The Fed and BI. The market consensus still predicts that the central bank will maintain its interest rate.

As for the stocks that are interesting to observe on Monday (18/3) according to Ayu, among others, MAPI has a target price of Rp 2,050, CTRA Rp 1,320, and PTBA Rp 3,110.

Meanwhile, Herditya said, investors can observe BIRD stocks at the price level of Rp 1,825–Rp 1,900, AUTO with a price range of Rp 2,330–Rp 2,480, and KLBF with a target price of Rp 1,530–Rp 1,600.