Correction engulfing Jakarta Composite Index (JCI) in the last 3 days made the index fell to the lowest level since September 23 2010, prompting investors in wait and see position. Trading volume was also tin as well.
However, the situation may provide an opportunity for the JCI to rebound today, especially for blue chips which have suffered massive sell-off. Several stocks to watch are BBRI, MEDC, BBTN, INDF, BBTN, AALI, LSIP, and TLKM. Here are recommendations provided by stock brokerages as reported by Bisnis Indonesia today:
The JCI today is estimated to move at the range of 3,327-3,407. Still, the current economy and monetary situations may influence the market and spur a bargain hunting for several stocks such as BBRI, BBTN, and INDF.
The JCI strives to rebound at the range of 3,333-3,397, spurred by the economic data growth in Europe and expectation on Bank of Japan meeting today. Top picks are BBTN, AALI, LSIP, and TLKM.
After suffering a 0.99% drop to 3,348 with drops egulfing all sectors. The property sector was the most with 2.52% decrease. The JCI is predicted to the range of 3,313-3,588. Recommended stocks are BBTN, MEDC, and TLKM.
Sinar Mas Sekurias:
The JCI is predicted to move at the range of 3,312-3,409, while rebound may occur today. Since January, capital outflow persists from emerging markets to developed markets. After suffering drop in 5 consecutive days, the JCI has possibility to rise. Stocks to watch are BBRI and INTP.
Disclosure: No position at the stock mentioned above.