The Jakarta Composite Index (IHSG) is projected to stage a recovery, trading within the 6,489 to 6,590 range this Thursday (May 21). This anticipated rebound follows a downturn on Wednesday (May 20), when the index fell by 52.18 points, or 0.82 percent, to close at 6,318.5.
According to M. Nafan Aji Gusta, Senior Technical Analyst at Mirae Asset Sekuritas Indonesia, the expected upward movement is largely driven by technical factors. “The IHSG is attempting a rebound due to oversold conditions indicated by the RSI, particularly after previously hitting its ‘wave 5 / A’ target,” Nafan explained.
Beyond technical indicators, market sentiment is being bolstered by Bank Indonesia’s (BI) latest monetary policy shift. The central bank implemented a more aggressive tightening stance than analysts had anticipated, raising the BI Rate by 50 basis points to 5.25 percent. “The consensus had only projected a limited increase to 5.00 percent,” noted Nafan. “This decision was made to curb the intense pressure on the rupiah’s exchange rate.”
Adding to this sense of market stability, investor confidence was further supported by President Prabowo’s recent address at the House of Representatives (DPR) plenary session. The President outlined realistic economic growth targets for the upcoming fiscal year, ranging from 5.8 percent to 6.5 percent. Coupled with clear macro assumptions, such as Government Securities (SBN) yield targets, these details provide the market with much-needed certainty. “This clarity is essential for mitigating volatility risks,” Nafan added.
For investors looking to navigate today’s market, Mirae Asset Sekuritas has issued recommendations for AMRT, LSIP, and PTBA.
Meanwhile, MNC Sekuritas offers a more cautious outlook, predicting that the IHSG may experience mixed trading throughout the day. The index could potentially strengthen toward the 6,401–6,514 level, or face a correction toward the 6,148–6,179 range.
“Investors should closely monitor the 6,148–6,179 correction zone, with an immediate upside target set between 6,401 and 6,514,” MNC Sekuritas advised in their latest market briefing. Their stock picks for the day include AADI, AMRT, HRTA, and MBMA.
Disclaimer: Investment decisions are entirely based on the reader’s own judgment and analysis. This article is intended for informational purposes only and does not constitute a recommendation to buy, hold, or sell any specific investment product.
Summary
The Jakarta Composite Index (IHSG) is expected to rebound following a recent downturn, trading between the 6,489 and 6,590 range. Analysts attribute this potential recovery to oversold conditions and technical indicators, alongside a stronger-than-expected 50 basis point interest rate hike by Bank Indonesia aimed at stabilizing the rupiah.
Market confidence is further bolstered by the government’s clear fiscal growth targets and macroeconomic assumptions, which provide investors with greater policy certainty. While some analysts maintain a cautious outlook regarding potential corrections, various firms have identified specific stock opportunities to guide investors navigating the current market volatility.