The implementation of Community Activity Restrictions (PPKM) which has been officially extended has affected the IHSG movement today. This is due to the reaction of market participants to the decision to extend the emergency PPKM until July 25, 2021.
The Composite Stock Price Index (IHSG) is at risk of experiencing pressure on Wednesday’s trading (July 21, 2021) amid the slump in global markets.
It is known that on Monday (July 19, 2021), the composite index weakened by 0.91%, or equivalent to 55.12 to 6,017. Throughout the trading day, IHSG moved in the range of 6,015 to 6,063.
Dimas Pratama, as an analyst at PT NH Korindo Sekuritas Indonesia, said that the three main US indexes managed to rebound significantly at the close of Wednesday (July 20, 2021) after a massive sell-off at the beginning of the week.
As a result of concerns about the increase in cases of the delta variant of the Covid-19 virus, investors returned to hunting for industrial and transportation stocks, which had sharply corrected. Meanwhile, the yield on the 10-year US treasury is continuing its downward trend in the range of 1.2 percent.
Another negative sentiment is the decline in the prices of some commodities such as oil, gold, tin, and nickel during the increasing number of countries that prohibit tourists from Indonesia due to the high number of Covid-19 cases.
In addition, the projection of Indonesia’s gross domestic product (GDP) from one of the global rating agencies is not encouraging. This is a negative factor for IHSG.
“Technically. IHSG still has the potential to be suppressed with a range of 5,950 to 6,130,” Dimas added in a research publication.
Here are today’s stock recommendations:
ERAA BUY TP 620 CL 570
ADRO BUY TP 1300 CL 1235
IPCM BUY ON WEAKNESS TP 480 CL 416
INAF BUY TP 3300 CL 3030
MTDL ACCUM BUY TP 2510 CL 2300
Disclaimer: This news does not intend to pursue readers to sell or buy certain shares.