Executive Summary

Key insights and market outlook

The Indonesian Composite Stock Price Index (IHSG) ended the week at 8,414.35, down 0.07% on Friday ¹

. Despite the weekly decline, the index still recorded a weekly gain of 0.19% or 16.21 points ¹. Foreign investors recorded net buying of Rp 3.86 trillion during the week ². Market movements were influenced by Bank Indonesia's decision to maintain the BI rate and global factors including potential Fed rate cuts ¹.

Full Analysis

02

Deep Dive Analysis

Indonesian Stock Market Ends Week on Cautious Note

Mixed Performance Despite Weekly Gain

The Indonesian Composite Stock Price Index (IHSG) closed at 8,414.35 on Friday, marking a slight decline of 0.07% ¹

. Despite this end-of-week dip, the index managed to record a weekly gain of 0.19% or 16.21 points compared to the previous week's close ¹. The mixed performance reflects investor caution amid both domestic and international market developments.

Foreign Investor Activity

Foreign investors maintained a positive sentiment in the Indonesian market, recording a net buy position of Rp 3.86 trillion during the week ²

. This buying activity suggests continued confidence in Indonesia's stock market despite short-term volatility.

Market Drivers and Influences

The week's market dynamics were influenced by several key factors. Bank Indonesia's decision to maintain the BI rate provided temporary support to the IHSG, though the positive impact was short-lived as profit-taking activities emerged later ¹

. Globally, market participants were cautious due to shifting expectations regarding potential interest rate cuts by the Federal Reserve in December 2025 ¹.

Sectoral Performance and Market Sentiment

The week saw corrections in five sectors simultaneously, contributing to the index's weak performance on Friday ²

. Market participants remained cautious as the likelihood of a Fed rate cut in December appeared to diminish, creating some pessimism about potential monetary policy easing in the near term ¹.

References