The Jakarta Composite Index (JCI) weakened 1.10% to 6,813.23 at the end of trading on Wednesday (4/1). JCI's movement on Thursday (5/1) is projected to still be overshadowed by global sentiment.
Equity Research Phintraco Sekuritas Rio Febrian noted that technically the JCI position at 6,820 is a critical level that determines the direction of JCI's movement for the next few days.
JCI's movement was weighed down by the collapse of energy stocks. The IDX index for the Energy sector fell the deepest by 3.20% on Wednesday (4/1).
"Selling pressure on energy stocks is expected to ease this Thursday, especially if the Fed's minutes are more dovish than market participants' concerns," Rio explained, Wednesday (4/1).
Externally, JCI's movement will also still be overshadowed by China's plan to relax COVID-19 restrictions on January 8, 2023, especially for migrants.
Meanwhile, domestically, continued Rio, stocks related to consumption and community activities are in a positive trend following the decision to abolish PPKM in Indonesia.
MNC Sekuritas analyst Herditya Wicaksana projects that JCI will move corrected to test 6,760 to 6,797. JCI will test support at 6,715 and resistance at 6,908.
"Sentiment is more global, where currently the movement of global exchanges still tends to correct with the threat of recession and the projected global economic slowdown from the IMF," he explained.
Sinarmas Sekuritas analyst Mayang Anggita analyzed that JCI has the potential to weaken towards the next support, namely the long-term trendline around 6,700
Mayang said that this level is expected to be able to support the JCI movement in order to keep the uptrend solid. The nearest resistance of JCI is at MA50 at 6,946.
"Financiers are advised to stay concentrated and remain disciplined in the application of money management," he said.