JCI is under pressure for a week, here’s the reason

Armfalcon.com, JAKARTA — The movement of the Composite Stock Price Index (IHSG) this week has been under pressure again and has been corrected by 0.18 percent. Ajaib Sekuritas Financial Expert, Chisty Maryani, sees the JCI moving very volatile this week.

“The domestic market was optimistic at the beginning of the week, triggered by rising prices for several commodities such as coal, CPO and nickel. The increase in crude oil prices has also strengthened the movement of issuers in the energy sector,” said Chisty, Friday (7/4/2023).

In addition, the government’s expectation of a large dividend distribution from coal-based stocks and the administration of a one percent VAT incentive for four-wheeled electric vehicles and buses last week also served as a positive catalyst for the JCI.

However, this week the JCI has not been able to close green. The deepest pressure was caused by a correction from the technology sector of 2.91 percent. One of the reasons is external pressure, such as the potential for the United States economy, which is projected to weaken this year after the release of US labor market data.

Market players are also worried because of depreciating demand at the global level in line with the potential for a global economic slowdown. “Market participants tend to transfer ownership of risky assets from stocks growth stock to stocks that tend to be defensive,” said Chisty.