Indonesian Stock Market Dips Before Long Weekend

The Indonesian stock market experienced a modest dip as the long weekend approached, with the Composite Stock Price Index (JCI) retreating to the 7,100 level after briefly touching 7,300. on Friday, January 24, 2025, the index closed at 7,166.05, marking a 0.92% decrease.Trading volume for the day reached approximately Rp 12.6 trillion, involving 25.7 billion shares changing hands 1.2 million times. While 213 shares gained strength, 354 weakened, and 243 remained unchanged.

the technology and infrastructure sectors played a significant role in the JCI’s decline, experiencing falls of 2.07% and 1.43%, respectively.

Foreign investors adopted a net selling position in the market, selling a total of Rp568.04 billion across all markets. they offloaded Rp840.79 billion worth of shares in the regular market. However, they also made a net purchase of Rp272.75 billion in the negotiation and cash markets.

BBCA was the stock most heavily targeted by foreign investors, with a net sell of Rp739.44 billion. This was followed by BBRI with Rp132.65 billion and ADRO with Rp36.43 billion.

Indonesian Stock Market Slides ahead of Long Weekend

The Indonesian stock market experienced a slight dip just before the long weekend, with the Jakarta Composite Index (JCI) falling back below the 7,200 mark. To understand the factors driving this movement, we spoke with Indra Ardiyanto, an analyst at PT Finanza securities.

“The JCI dipped back below the 7,200 mark today. Can you shed some light on the factors contributing to this decline?” we asked Indra.

Indra Ardiyanto, PT Finanza Securities

As the long weekend approaches, investors often take a more cautious approach, leading to some profit-taking and a slight pullback in the market. This is a common trend we see leading up to holidays.

declining foreign Investment Worries

Indonesia has recently witnessed a trend of foreign investors pulling back from the market. We asked Indra how confident he was that this trend would continue.

“Looking at current global economic conditions and investor sentiment, it’s likely that foreign investors may remain cautious in the near term,” Indra explained. “Factors like rising interest rates in developed economies and global economic uncertainty are prompting investors to re-evaluate their asset allocation and perhaps reduce exposure to emerging markets, including Indonesia. Though, it’s critically important to remember that market trends can shift quickly, and any sustained pullback would depend on a confluence of factors, including domestic economic performance and policy measures.”

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What specific domestic economic indicators should local investors be monitoring to gauge the potential impact on the Indonesian stock market?

Indonesian Stock Market Slumps Ahead of Long Weekend: Analyst Interview

Indra Ardiyanto, PT Finanza Securities

As the long weekend approaches, investors often take a more cautious approach, leading to some profit-taking adn a slight pullback in the market. This is a common trend we see leading up to holidays.

Declining Foreign Investment: A Cause for Concern?

“Looking at current global economic conditions and investor sentiment, it’s likely that foreign investors may remain cautious in the near term,” Indra explained. “Factors like rising interest rates in developed economies and global economic uncertainty are prompting investors to re-evaluate their asset allocation and perhaps reduce exposure to emerging markets, including indonesia. Though, it’s critically vital to remember that market trends can shift quickly, and any sustained pullback would depend on a confluence of factors, including domestic economic performance and policy measures.”

Given these factors, what advice would you give to local investors considering the market’s current direction?