JCI to narrowly strengthen

JAKARTA. Capital market analysts predict the Jakarta Composite Index (JCI) on Monday will strengthen narrowly.

“The JCI hopes to continue [to see] increases, however, several market players are likely to continue to take a selling, which may slow the rate of the stock index,” said Trust Securities’ head of research, Reza Priyambada, in Jakarta on Sunday, as quoted by Antara news agency.

Reza hoped that global manufacture data and the rupiah exchange rate would stabilize to give the JCI a positive sentiment on Monday.

He said market players should pay close attention to consumer, trade, infrastructure and basic industry sector stocks.

Meanwhile, Valbury Asia Securities’ head of research, Alfiansyah, said investors would still benefit from the market euphoria following the US Federal Reserve’s (Fed) decision to continue its quantitative easing program, so the JCI would continue to appreciate.

However, he predicted that the JCI’s strengthening potential was limited because of overbought conditions.

Meanwhile, Sinarmas Sekuritas analyst, Christandi Rheza Mihardja, predicted that the IDX index would weaken in the range of 4,520 – 4,615 points on Monday.

“Trade will be influenced by the results of the German elections,” Christandi said, adding that data from China’s Purchasing Managers’ Index (PMI) would also give additional sentiment.

He recommended several stocks to watch. They included Vale Indonesia (INCO), PT Timah (TINS) and Matahari Putra Prima (MPPA). (The Jakarta Post)