JAKARTA — The Composite Stock Price Index (IHSG) is projected to strengthen significantly during the trading week of December 8-12, 2025. A primary catalyst underpinning this optimistic outlook for the IHSG is the upcoming meeting of The Federal Reserve, which is widely anticipated to initiate a cut in its benchmark interest rate.
According to the Customer Engagement & Market Analyst Team at BRI Danareksa Sekuritas, the IHSG remains firmly within a bullish trend from a technical perspective. The index demonstrates the potential to advance towards its nearest resistance levels, situated between 8,655 and 8,670, while maintaining robust support at 8,595-8,610. In a less favorable, bearish scenario, the IHSG’s support level is identified between 8,494 and 8,554.
BRI Danareksa Sekuritas highlights that the pivotal event influencing the IHSG this week will be The Fed’s meeting on December 9-10, 2025. This gathering is set to determine the direction of interest rates following an extended period of monetary tightening, a decision closely watched by global markets.
“The majority of analysts anticipate The Fed will implement a 25 basis point rate cut, driven by emerging signs of weakening labor data and inflation that is now deemed sufficiently under control,” stated the BRI Danareksa Sekuritas Team. This expectation of a rate reduction has already propelled Wall Street indices near record highs. Should this cut materialize, it is expected to lead to a weakening of the U.S. dollar and a subsequent increase in foreign capital inflows, thereby providing a positive sentiment boost for the IHSG as the year concludes.
Interestingly, BRI Danareksa Sekuritas also noted a significant net sell of approximately IDR 27.5 trillion by foreign investors in the Indonesian stock market. Despite this, the IHSG has remarkably climbed by approximately 22% year-to-date and even managed to breach a new record high, showcasing its resilience.
This sustained positive sentiment for the IHSG is underpinned by several key factors. These include the growing influence of domestic investors in maintaining market liquidity, unwavering market confidence in the durability of Indonesia’s economy, and a promising trend of moderating inflation and interest rates, which collectively contribute to a more stable investment environment.
Market attention will also be keenly focused on the Initial Public Offering (IPO) of swiftlet bird’s nest issuer, PT Abadi Lestari Indonesia Tbk. (RLCO), scheduled for Monday, December 8, 2025. BRI Danareksa Sekuritas suggests that on its inaugural day of trading, there is a substantial potential for market euphoria. This indicates a strong likelihood for the stock price to rise above its IPO level, particularly if there is significant demand during the initial trading sessions.
For the current week, BRI Danareksa Sekuritas has identified and recommended specific stocks, including WIFI, PJHB, and KETR, as their weekly picks for investors.
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