JAKARTA – Analysts forecast that the Jakarta Composite Index (JCI) will fluctuate this week, within a support range of 6,370 to a resistance level of 6,740.

According to retail research by CGS International Sekuritas Indonesia, positive sentiment from the US stock markets may support JCI. However, foreign selling pressure and declining commodity prices are concerns that may burden the index.

“The index is predicted to move variably with a weakening tendency, with support at 6,405 and 6,295 and resistance at 6,630 and 6,740,” CGS International Sekuritas Indonesia's latest report stated.

Meanwhile, the Research Team of Phintraco Sekuritas noted that JCI's performance this week is also overshadowed by risk uncertainty, both from international and domestic factors. “JCI is expected to fluctuate widely in the range of 6,370–6,630 this week,” they wrote in their latest report.

In contrast to these views, Panin Sekuritas research is optimistic that JCI will strengthen this week. Supportive sentiments include the correction in the US stock market, which is driving fund shifts to emerging markets, the index’s relatively cheap valuation, and the stable rupiah exchange rate.

During last week’s trading, JCI weakened by 1.81% or 120.37 points to 6,515.63. (KR/ZH)