Positive sentiments having entered the market since Friday night through this morning may affect the trading of Jakarta Composite Index (JCI). Profit taking may still influence the trading of the index which has been settled above the new psychological level at 3,500 last week.
However, the lower-than-expected inflation rate, commodity price hike and positive closing at markets across the region last week will be the underlying factors to encourage investors to buy shares. Which shares to buy? Here are recommendations from some securities companies as reported by Bisnis.com today:
The lower-than-expected inflation in September brought JCI to the new high in last week's trading. Today, JCI will test the level of 3,600 with the help of the capital inflow. Recommended shares are ANTM, PGAS, and WIKA.
JCI set the new record high at 3,547.12 (1.31%). The gain in industrial shares led by ASII drove the index up. Moreover, the increase in global oil and several commodity prices gave positive sentiment to mining and agricultural sectors. Technically, the index will remain in overbought area for short term and it may show mixed trend. The index will move within the range of 3,490-3,580. Recommended shares are LSIP and AALI.
On Friday, JCI strengthened by 45 points (+1,3%) following a report on US GDP which was above the forecast and the declining jobless claims, bringing positive sentiment globally. In addition, US companies' earnings session starting October 7 will affect the market positively. Foreign investors on Friday made IDR99 billion net buy. The index today is predicted to move between 3,492 and 3,582. Recommended shares are BRAU, BUMI, BBRI, and DOID.
The closing of Asian markets in positive area last week gave condusive situation and assisted JCI to climb by 1.3%. The rebound in investors' appetite to buy shares is expected to be the catalyst of further rally. The index is predicted to move in the range of 3,515-3,564, with recommended shares, like HEXA and INDY.
Disclosure: No position at the stock mentioned above.
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