IDX index on brink of 5,000 after bruising week
Foreign fund outflows and uncertainty over Indonesia’s MSCI classification pushed the Indonesian benchmark stock index close to the 5,000-point mark, while global concerns over AI spending added to selling pressure.
The Indonesian benchmark stock index, known as the IDX Composite index, neared the 5,000-point mark after a tumultuous week, according to wire material. Foreign fund outflows, uncertainty surrounding Indonesia's MSCI classification, and global concerns over AI spending contributed to the selling pressure on Indonesian stocks. The index experienced a 7 percent drop over the week, closing just above the 5,000-point threshold on Friday.
Investors were initially unsettled by the volatile rupiah, foreign fund outflows, and the country's uncertain market classification by global index provider MSCI. The Indonesia Stock Exchange (IDX) Composite index dipped 0.80 percent, reaching 5,057.05 on Friday, after briefly falling below the 5,000-point mark in the morning session. It opened down 0.61 percent at 5,066.94 before plummeting to a low of 4,979.34 points.
A senior technical analyst at Mirae Asset Sekuritas, M. Nafan Aji Gusta, noted that the index had formed a long black closing marubozu candlestick pattern, signaling that selling pressure once again dominated the market. However, Gusta suggested that the potential downside was limited, recommending investors focus on selected stocks with solid fundamentals, those considered undervalued, and those showing signs of a potential reversal. He emphasized the importance of maintaining disciplined risk management.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
