Flooring Guide by Cinvex JAKARTA – PT Indo Premier Sekuritas (IPOT) projects that the Jakarta Composite Index (IHSG) is set for a potential rally this week, spanning August 25-29, 2025, with an anticipated climb towards the 8,000 level.
This optimistic outlook, according to Indri Liftiany Travelin Yunus, IPOT’s Retail Equity Analyst, is largely fueled by heightened market confidence. This surge in optimism follows Bank Indonesia’s recent interest rate cut and the strong possibility of a subsequent rate reduction by The Fed in September, both factors expected to inject liquidity and stimulate economic activity.
Despite the prevailing optimism, the IHSG experienced a slight downturn last week, shedding 0.50% or 39.52 points to close at 7,858.85. However, this dip was significantly cushioned by robust foreign capital inflows, with foreign investors recording a substantial net buy of Rp2.73 trillion. This figure, while indicating continued foreign interest, also reflects a slight contraction in the scale of net foreign buying compared to previous periods, even as the index entered the red zone.
“Indo Premier Sekuritas (IPOT) maintains that the IHSG remains fundamentally healthy, especially given its proximity to its All-Time High,” Indri stated in a written declaration on Monday, August 25, 2025, reassuring investors about the market’s underlying strength.
Amidst the projected ascent of the IHSG towards the 8,000 mark, IPOT has pinpointed several stocks offering compelling investment opportunities for the discerning investor. Their recommendations are backed by a thorough blend of fundamental and technical analysis, aiming to maximize potential returns while managing risk.
One prominent recommendation from IPOT (broker code PD) is PT TBS Energi Utama Tbk. (TOBA), designated as a ‘buy’. The brokerage firm has set a target price of Rp1,150, which promises a substantial 9.5% return from its last trading price of Rp1,050 per share. To mitigate potential losses, IPOT advises a stop loss level below Rp1,015, representing a contained 3.3% downside. This strategic positioning results in an attractive risk-to-reward ratio of 1:2.9.
From a technical standpoint, TOBA closed stronger in its most recent trading session, accompanied by a noticeable increase in transaction volume. Its candlestick patterns show resilience, holding above the EMA 5 and 20 lines. Furthermore, based on Fibonacci analysis, TOBA exhibits strong potential to sustain its upward momentum, reinforcing the projection towards the Rp1,150 target price.
Another stock catching IPOT’s eye is PT Astra Otoparts Tbk. (AUTO), for which a target price of Rp2,600 has been established. This target implies a healthy 5.7% return from its last traded price of Rp2,460. The recommended stop loss is positioned below Rp2,400, limiting potential downside to 2.4%, and yielding a favorable risk-to-reward ratio of 1:2.3.
Technically, AUTO concluded its last trading day by forming a robust marubozu candlestick, supported by a significant volume spike. Critically, the Rp2,400 level, previously acting as a key resistance, has been successfully breached. Should AUTO maintain its position above Rp2,500, it is well-positioned to continue its rally towards the Rp2,600 target.
IPOT also extends its ‘buy’ recommendation to PT Medco Energi Internasional Tbk. (MEDC), setting an ambitious target price of Rp1,340 per share. This represents an attractive 8.1% return from its closing price of Rp1,240. Investors are advised to place a stop loss below Rp1,200, translating to a contained 3.2% correction, and resulting in a compelling risk-to-reward ratio of 1:2.5.
“MEDC is currently striving to break out past its EMA 20 and 50 lines, and its Stochastic oscillator has already signaled a ‘golden cross’ while remaining below the overbought threshold,” Indri elaborated. “If MEDC successfully breaches the Rp1,270 level, we anticipate it will strengthen significantly, reaching its projected target of Rp1,340.”
Beyond the equity market, IPOT also offers a ‘buy’ recommendation for the PBS038 bond. This recommendation comes on the heels of Bank Indonesia’s decision to cut its benchmark interest rate to 5%, further supported by the anticipated prospect of additional interest rate reductions by the United States. Given its sensitivity to interest rate movements and an appealing price level of 100.65, coupled with a relatively long maturity period, the PBS038 bond presents an attractive opportunity for fixed-income investors seeking yield in a dynamic economic environment.
For the upcoming week’s trading, Indri highlights three pivotal data releases that market participants should closely monitor. Firstly, US consumer confidence for August is projected to see a slight uptick to 98, rising from its previous reading of 97.2, indicating potentially improving consumer sentiment.
Secondly, the US initial jobless claims for the third week of August are expected to show a minor increase to 236,000, up marginally from the prior week’s 235,000, offering insights into the labor market’s health. Lastly, the US core PCE price index data for July is anticipated to hold steady at 0.3%, a crucial metric for inflation watchers.
Indri further noted that in the past week’s trading, only two sectors experienced a decline. The Infrastructure sector emerged as the weakest performer, recording a 1.79% decrease. In stark contrast, the industrial sector played a pivotal role in bolstering the IHSG’s performance, achieving an impressive 4.68% gain and providing significant support to the overall index’s trajectory.
The stellar performance of the industrial sector was largely attributed to the robust ascent of PT Astra International Tbk. (ASII), which holds the largest weighting within the sector. “The surge in ASII’s shares stems from market optimism surrounding its proposed strategic review,” Indri explained. “This review, encompassing both asset acquisition and divestment strategies, holds substantial potential to significantly impact the distribution of large dividends, further enhancing investor appeal.”
Astra International Tbk. – TradingView
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Summary
PT Indo Premier Sekuritas (IPOT) projects the Jakarta Composite Index (IHSG) to potentially reach the 8,000 level this week, spanning August 25-29, 2025. This optimistic outlook is fueled by heightened market confidence following Bank Indonesia’s recent interest rate cut and the strong possibility of a subsequent Fed rate reduction. Despite a slight 0.50% dip last week, robust foreign capital inflows cushioned the downturn, with IPOT reaffirming the IHSG’s fundamental health near its All-Time High.
Amidst this projected ascent, IPOT recommends ‘buy’ for stocks such as PT TBS Energi Utama Tbk. (TOBA) with a target price of Rp1,150, PT Astra Otoparts Tbk. (AUTO) targeting Rp2,600, and PT Medco Energi Internasional Tbk. (MEDC) with a target of Rp1,340. IPOT also advises buying the PBS038 bond, citing its sensitivity to interest rate movements. Last week, the industrial sector, driven by PT Astra International Tbk. (ASII) due to its strategic review, significantly bolstered the IHSG’s performance.