JAKARTA – Several analysts predict that Jakarta Composite Index (JCI) in today’s trading session, Tuesday (25/2), still has the potential to weaken, continuing Monday’s (24/2) decline.

Analysts from CGS International Sekuritas Indonesia, in their research report today, mentioned that most indices on Wall Street were closed lower at the beginning of this week. However, the rise in the price of several commodities such as gold is expected to provide a positive sentiment for JCI.

“JCI is predicted to fluctuate, tending to weaken within the support range of 6,685/6,620 and resistance at 6,815/6,880,” wrote CGS International Sekuritas Indonesia analysts in their research report.

Meanwhile, analysts from Phintraco Sekuritas noted that JCI failed to break through the dynamic resistance of MA5 at the 6,800 range on Monday.

“Thus, JCI remains vulnerable to further weakening, testing the psychological support of 6,700 in Tuesday’s (25/2) trading,” wrote Phintraco Sekuritas analysts.

Phintraco Sekuritas also sees the potential for positive domestic sentiment for JCI from the launch of Danantara. This investment management body is seen as being able to support the expansion and efficiency of state-owned enterprises, although its independence and transparency in execution still need to be monitored.

As reported by IDNFinancials.com, JCI weakened by 0.78% at the beginning of this week’s trading to the level of 6,749.6. Foreign investor selling pressure remained quite strong throughout the session, with a net sell of IDR 3.47 trillion. (KR/ZH)