The Jakarta Composite Index (JCI) is expected to continue its upward swing on Thursday after surging 114.4 points or 2.87 percent on Wednesday to close just above a psychological barrier at 4,001.

In technical terms, the JCI is expected to strengthen and break its short-term downtrend resistance line,

E-Trading Securities research chief Betrand Reynaldi said Thursday.

“We expect the JCI will strengthen. It will move between 3,960 and 4,067,” Betrand said as quoted by kontan.co.id.

He added that traders should monitor stocks including Gajah Tunggal (GJTL), State Gas Company (PGAS) and Bank Mandiri (BMRI).

Meanwhile, Universal Broker Indonesia research chief Satrio Utomo said the JCI would move between 4,020 and 4,050 following a positive sentiment on the Dow Jones Industrial Average Index last night.

The Dow Jones closed at 11,414.86 on Wednesday (Thursday morning), up 275.56 points or 2.47 percent.

Investment sentiment improved after a Federal Reserve survey on Wednesday showed that the US economy grew modestly in its 12 bank regions in July and August as consumers spent more.

Traders are also hoping that President Barack Obama will announce a $300-billion jobs package made up of tax cuts, state aid and infrastructure spending in an address to Congress on Thursday night.

 

Source: Jakarta Post