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IDX Composite could break 8,000 points in 2024, analysts say
Banking, telecommunications and consumer goods are expected to propel the Indonesian bourse to a new all-time high this year, with bullish scenarios forecasting a breakthrough into the 8,000 range.
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A man is silhouetted on Jan. 2, 2023 as he walks past a screen at the Indonesia Stock Exchange in Jakarta. (AFP/Adek Berry)
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nalysts expect sectors like banking, telecommunications and consumer goods to push the Indonesia Stock Exchange (IDX) Composite to a new record high this year, possibly beyond 8,000 points.
The stock market index closed at 7,272 points on Dec. 29, the last trading day of 2023, failing to beat its all-time high of 7,318 points in September 2022.
Last year, the stock market logged a record 79 initial public offerings (IPOs), bringing the total number of listed companies to 903.
The Global IPO Trends report, published in December 2023 by consulting firm Ernst & Young, shows Indonesia ranked as the fourth-most active listing market in the world, only behind China, India and the United States.
This helped push the IDX market cap as of Dec. 29 to Rp 11.7 quadrillion (US$756 billion), the highest in Southeast Asia.
Despite the high IPO activity, the bourse’s average daily trading value at the year-end was only Rp 10.75 trillion, down 26.9 percent from the end of 2022.
“As we know, IDX transactions were dominated by retail investors. After the pandemic, they started going outside and moving their money to the real sector. On the other hand, the surging interest rate also encouraged them to put money in banks or government bonds instead,” IDX research head Verdi Ikhwan told a press briefing on Dec. 13.
