Kiswoyo Adi Joe, an analyst from Investa Saran Mandiri, said the index gain was caused by technical factors following last weekend's sharp correction. However, the reinforcement has not represented a change in JCI's direction. "The index movement is still on a flat trend; in wait for the official results of the presidential election."
According to Kiswoyo, market participants—particularly foreign investors—are still waiting for the right moment to enter the market. That's why he believed that the index gain was driven by domestic investors' transaction and investment switching. "Investors are moving their assets from the money and bonds market as their prospects are becoming more limited."
Amid Indonesia's weakening economic fundamentals, investors seemed unaggressive in accumulating stocks; as evident in the low trading volume, with foreign net sales only reaching Rp250 billion.
Today the index is expected to move sideways between 4,900 and 5,000. The JCI will enter a bullish trend once it closes 5,100. Kiswoyo recommended investors to look at consumer-based stocks, especially ahead of the fasting month. "For example, Unilever, Tiga Pilar Sejahtera, and Indofood," said Kiswoyo.
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