IHSG Projected to Move Sideways and Slightly Strengthen Next Week
The market has not fully exited the consolidation phase following global and domestic sentiments.
Jakarta (ANTARA) - Capital market analyst Reydi Octa projects that the Composite Stock Price Index (IHSG) has the potential to move sideways and tend to strengthen slightly next week.
He explained that this is because the market has not fully emerged from the consolidation phase after global and domestic sentiments, and investors tend to await new catalysts.
“The IHSG has the potential to move sideways with a tendency to strengthen slightly, with a technical rebound pattern after the pressure of the past few weeks, as the market has not fully exited the consolidation phase following global and domestic sentiments. The range of movement will likely be limited while awaiting new catalysts,” said Reydi when contacted by Antara in Jakarta on Sunday.
Next week, Reydi projects that sentiments from abroad will still be influenced by the direction of interest rates from the US Federal Reserve, movements in US Treasury yields, as well as geopolitical dynamics and commodity prices.
“Positive sentiments could come from strengthening global stock markets and easing geopolitical tensions,” said Reydi.
Meanwhile, domestically, he projects that market players will focus on the continuation of foreign investors’ responses to MSCI issues and market confidence in the domestic stock market.
In addition, he mentioned that the direction of Bank Indonesia (BI) interest rates, developments in ratings from global index providers, inflation data, and the rupiah exchange rate will determine foreign capital flows in the domestic market.
“The direction of BI interest rate policy, developments in ratings from global indices, inflation data, the pace of the rupiah exchange rate. This combination will determine whether capital inflows can stabilise again or remain in a wait-and-see mode,” said Reydi.
Regarding the current stance of market players, Reydi explained that investors are currently more defensive and selective, focusing on large-cap stocks that are liquid.
“More defensive and selective, investors focus on big cap and liquid stocks, rotation to commodity- and energy-based sectors as an effect of global geopolitical pressures,” said Reydi.
Data from the closing of trading on the Indonesia Stock Exchange on Friday (10/4) afternoon showed that the IHSG closed higher by 150.91 points or 2.07 percent to 7,458.50. Meanwhile, the LQ45 index of 45 leading stocks rose 12.57 points or 1.71 percent to 746.47.
The frequency of stock trading was recorded at 2,287,124 transactions with the number of shares traded at 42.94 billion shares worth Rp18.12 trillion. A total of 485 stocks rose, 181 fell, and 153 remained unchanged.