Flooring Guide by Cinvex JAKARTA – Indonesia’s IDXTECHNO, the technology sector index, closed down 0.66% at 9,681 in trading today, Wednesday, October 29, 2025. Despite the day’s dip, the tech sector remains a frontrunner, boasting a remarkable 142.16% year-to-date (YtD) surge.
However, emerging data suggests that the technology sector may be entering a bearish phase, signaling a potential downturn. According to the Relative Rotation Graph (RRG) data as of October 21, 2025, IDXTECHNO has now moved into the weakening quadrant, with both RS-Momentum and RS-Ratio showing a decline towards the 100 level.
M. Nafan Aji Gusta, Senior Market Analyst at Mirae Asset Sekuritas, views this sectoral rotation as a natural market dynamic. He notes that IDXTECHNO had previously held a strong position in the leading quadrant, fueled by triple-digit index growth since the beginning of the year.
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“Tech stocks are in overbought territory and are starting to face pressure from profit-taking, which is normal considering valuations are becoming overvalued,” Nafan told Bisnis on Wednesday (10/29/2025).
As the technology sector potentially enters a weakening phase, the non-cyclical consumer sector, represented by IDXNONCYC, is beginning to show signs of improvement. Rotation graph data as of October 21 indicates that the index’s RS-Momentum has crossed the 100 level, while the RS-Ratio is moving closer to 100.
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At the close of trading on Wednesday (10/29/2025), IDXNONCYC closed up 0.35%, reflecting a 12.52% YtD increase.
Nafan explained that the sectoral rotation is bringing IDXNONCYC into the improving quadrant after previously being held back in the lagging quadrant.
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“IDXNONCYC has the potential to become a leading sector in the future. Why? Because if we look at the consumer confidence index (CCI) in Indonesia, it’s still above 100, indicating a positive outlook for the Indonesian economy over the next six months,” he stated.
Furthermore, the government remains optimistic that national GDP growth in Q3/2025 will remain above 5%. Additionally, the Christmas and New Year (Nataru) holiday season at the end of the year could act as a stimulus to boost domestic consumption.
“On the other hand, investors are paying closer attention to stocks with solid fundamentals. Non-cyclical consumer stocks, such as ICBP, are already showing potential for an accumulation phase,” Nafan elaborated.
Meanwhile, the sectoral rotation has also placed IDXFINANCE in the lagging quadrant, but with a trajectory moving closer to the improving quadrant, where RS-Momentum is hovering between 99-100, and RS-Ratio is ranging between 94-95.
At Wednesday’s market close (10/29/2025), IDXFINANCE closed up 1.56% at 1,440. This index strengthening aligns with the strong performance of several big bank stocks, such as BBCA, BMRI, and BBNI.
Nafan attributes this, in part, to investor perception favoring fundamentally sound stocks. Specifically for BBCA, Nafan believes the market is reacting to the company’s share buyback program.
“Big bank stocks have entered an accumulation phase,” he concluded.
Separately, Abdul Azis Setyo Wibowo, an analyst at Kiwoom Sekuritas, sees the consumer sector as currently undervalued and ripe for sector rotation. He also noted that consumer sector issuers are demonstrating recovering performance, citing ICBP’s successful 56.5% year-on-year (YoY) net profit growth in the first half of 2025.
“Currently, the leading driver of the non-cyclical consumer sector’s increase is poultry stocks, given that rising chicken prices and increased demand are leading market participants to appreciate their stock prices,” said Azis.
From a valuation perspective, Azis finds poultry sector stocks, such as JPFA, still attractive, with a P/E ratio of 11.45x compared to its 5-year average of 13.29x.
For recommendations, Azis assigned a “buy” rating to JPFA and ICBP stocks, with target prices of Rp3,000 and Rp11,450, respectively.
Disclaimer: This news is not intended as a solicitation to buy or sell stocks. Investment decisions are solely the responsibility of the reader. Bisnis.com is not responsible for any losses or profits arising from readers’ investment decisions.
Summary
Indonesia’s tech sector, represented by IDXTECHNO, despite a recent dip, has shown significant year-to-date growth but emerging data suggests a potential bearish phase. The Relative Rotation Graph indicates a weakening position for IDXTECHNO, with analysts pointing to overbought conditions and profit-taking as contributing factors. This sectoral rotation coincides with improvements in the non-cyclical consumer sector (IDXNONCYC), driven by positive consumer confidence and expectations of strong GDP growth and holiday spending.
Analysts are observing a shift towards fundamentally sound stocks, benefiting both the non-cyclical consumer and finance sectors. Specifically, poultry stocks are driving the consumer sector’s gains due to rising chicken prices and demand, while big bank stocks are in an accumulation phase, potentially boosted by share buyback programs. Experts recommend “buy” ratings for specific stocks within the consumer sector, indicating its potential for future growth.