TEMPO.CO, Jakarta – The domestic stock markets are expected to come under pressure at the start of the week because of the government's plan to raise subsidized fuel prices this week. Investors are advised to wait and see and not go against the impending downtrend.
"The index is in a selling trend. It's better not to fight it," said Mohammad Reza, an analyst with Trust Securities.
Reza said the Jakarta Composite Index (JCI) is in a correction trend ahead of the fuel price hike. Investors believe that the price hike will have a negative impact on listed companies' performances, prompting them to sell.
Moreover, Reza said, the majority of blue chip stocks are considered to have entered an overbought phase, with prices going too high and potentials to make profits investors declining.
With the absence of positive sentiments early in the week, the JCI is estimated to weaken in the range of 4,950-5,100 bps. However, with nickel prices beginning to rise, investors are suggested to pay attention to mining stocks such as INCO and ADRO.
"For the short term, opportunities are only visible in mining stocks," said Reza.
PDAT | MEGEL JEKSON