Indonesian Stock Market Outlook for Week Ahead
Market Consolidation Expected
The Indonesian Composite Index (IHSG) is anticipated to continue its consolidative movement into the coming week, particularly as trading activities remain subdued ahead of the year-end holiday 14. The index closed at 8,537.91 on Wednesday (24/12/2025), representing a decline of 0.55% or 46.87 points 1.
Factors Influencing Market Movement
Several factors are expected to influence the IHSG's performance:
- Limited Economic Catalysts: The lack of significant economic news or catalysts is likely to keep market movements restricted 45.
- Profit-Taking Activities: Investors are engaging in profit-taking ahead of the year-end, contributing to the market's cautious tone 4.
- Global and Domestic Sentiment: Investors are adopting a wait-and-see approach regarding both global and domestic economic developments 2.
Analyst Recommendations
- Selective Investment Approach: Analysts from Profina Visindo suggest that investors should be selective in their stock picks due to the current market uncertainty 4.
- Technical Analysis: Some analysts have provided technical recommendations for stocks such as AADI, ISAT, and MDKA for Monday's trading 1.
- Positive Long-Term Outlook: Despite short-term consolidation, some analysts maintain a positive outlook for the IHSG, with potential targets reaching 9,000 or even 10,000 levels in a bullish scenario 3.
Market Prospects and Future Developments
While the short-term outlook suggests consolidation, several factors could influence the market's direction in the coming months:
- Regulatory Developments: The potential increase in minimum free float requirements from 7.5% to 20-30% could impact market dynamics 3.
- Foreign Investor Interest: Emerging markets like Indonesia remain attractive to foreign investors due to relatively attractive valuations 3.