Profit Taking Activity makes JCI corrected

The Composite Stock Price Index (IHSG) is forecast to weaken today on Thursday (13/4), as market participants begin to take profit taking.

Binaartha Securities analyst Reza Priyambada said it was done by market participants to take advantage of previous JCI gains. As is known, JCI is now back to the level of about 6 300.

"Expected weakness may be more limited to withstand further weakness," Reza said in his research.

Another negative sentiment came from a survey by Bank Indonesia (BI), which mentions that the business sector of the infrastructure sector in the first quarter of 2018 fell 0.52, while in the fourth quarter of 2017 it still recorded growth of 0.03.

"This declining construction is inversely proportional to the government's ongoing infrastructure development," Reza said.

He called on market participants to be wary of other negative sentiments that could potentially make the JCI weaken. Today, Reza predicts JCI to move within the support range 6.285-6.296 and resistance 6.325-6.356.

Similarly, analyst Artha Sekuritas Frederik Rasali assess JCI will still be corrected ahead of the weekend. It can not be separated from the external sentiment, in the form of trade war of the United States (US) and China.

"There are investor concerns related to global sentiment related to trade wars and in Syria," Frederik said through his research.

Thus, he calls today's JCI to move to the support level 6.258 and resistance 6.384. According to Frederik, the weakening will continue until there is certainty related to the issue of trade war.

As reported earlier, the index corrected slightly 0.78 percent to 6,310 levels. Meanwhile, foreign market participants recorded net sell (net sell) in the regular market of Rp544, 5 billion.