Stock Market Likely to Remain Flat, Investors Advised to Choose Big Cap Stocks

Capital market observer Reydi Octa projects that the Composite Stock Price Index (IHSG) could move sideways and tend to strengthen slightly next week. He explained that this condition occurs because the market has not fully exited the consolidation phase following global and domestic sentiments, and investors tend to await new catalysts. “The IHSG has the potential to move sideways with a slight strengthening tendency, following a technical rebound pattern after pressures in recent weeks, as the market has not fully exited the consolidation phase post-global and domestic sentiments. The range of movement tends to be limited while awaiting new catalysts,” Reydi stated when contacted by Antara in Jakarta on Sunday (12/4/2026). 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,” Reydi said. Meanwhile, domestically, he projects that market players will focus on the continuation of foreign investor responses to MSCI issues and market confidence in the domestic stock market. In addition, he mentioned that the direction of Bank Indonesia’s (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’s interest rate policy, developments in global index ratings, inflation data, and the rupiah’s exchange rate movement. This combination will determine whether capital inflows can stabilise again or remain in a wait-and-see mode,” Reydi said.