IHSG Plunges for Three Consecutive Days: Analyst Stock Picks and Weekly Projection
The Jakarta Composite Index (IHSG) remained in the red for a third consecutive day at the end of the week. Citing data from the Indonesia Stock Exchange (BEI) via RTI Business, the IHSG slumped 1.88% or 118 points to close at 6,196.43 on Friday (24/7/2026). Despite the daily decline, the index recorded a 0.34% gain for the week. All sectoral indices weakened on Friday, weighing on the IHSG, led by a 3.04% drop in the non-primary consumer goods sector.
Analyst Wafi noted that the collapse of technology giants Alphabet, down 7%, and Tesla, down 14%, following the release of their second-quarter financial reports triggered concerns over stretched artificial intelligence valuations. "Brent crude oil breached USD 100.69 per barrel for the first time, exacerbating global inflation worries," Wafi told Kontan on Friday (24/7/2026). Wafi observed that recovery signals for the index have actually begun to emerge, but the position remains fragile and unconfirmed. The fundamental support level for the IHSG is now around 5,950, while the psychological resistance area at 6,471 is still considered far from being breached. "The two-day correction on Thursday and Friday reflects that the rebound is still fragile and highly dependent on external sentiment," Wafi said.
Amid this high uncertainty, Wafi recommends that investors prioritise issuers with natural hedges and strong earnings visibility. The energy and commodity sectors, such as PT Energi Mega Persada Tbk (ENRG), PT Alamtri Resources Indonesia Tbk (ADRO), and PT Bukit Asam Tbk (PTBA), are seen as beneficiaries of the rising global oil price trend. Additionally, banking stocks with high Current Account Savings Account (CASA) ratios, like PT Bank Central Asia Tbk (BBCA) and PT Bank Mandiri Tbk (BMRI), are advised to be retained as core portfolio holdings. Looking ahead to next week, Wafi projects that IHSG movement will be volatile with a mixed tendency. The index’s strong support area is estimated in the range of 6,185 to 6,250, while the resistance area lies between 6,350 and 6,470. Future market direction will depend heavily on three main sentiments: the release of first-half financial reports from major banks, US inflation data, and the dynamics of the conflict in the Strait of Hormuz. "KISI’s base case year-end target remains at 6,000-6,500, with the main determinant still being the MSCI November review," Wafi concluded.