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IDX Composite drops to 7,200 range on Tuesday
IDX Composite plummeted by 1.23 percent to 7,200.20 on Tuesday, with an analyst suggesting that investors consider stocks with strong fundamentals amid a possible market correction.
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An employee takes a photo of a screen showing stock movements on July 4, 2023, at the Indonesian Stock Exchange (IDX) in Jakarta. The IDX Composite plummeted by 1.23 percent to 7,200.20 on Tuesday, Jan. 9, 2023, with an analyst suggesting that investors consider stocks with strong fundamentals amid a possible market correction. (Antara/Hafidz Mubarak A)
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he Indonesian Stock Exchange (IDX) Composite (IHSG) extended its decline on Tuesday, dropping by 89.81 points or 1.23 percent, to close at 7,200.20.
The total volume of shares traded reached 18.21 billion with a transaction value of Rp 9.53 trillion (US$610.72 million). Among the listed stocks, 337 fell, 193 rose and 241 traded sideways.
Seven out of the 11 sectors concluded in negative territory. The raw material sector plummeted by 4.29 percent. Transportation followed by falling 1.64 percent, while infrastructure and non-primary consumer goods lost 1.48 percent each.
The energy sector dipped by 0.62 percent. Additional sectors experiencing declines included the technology and the health sectors.
On the positive side, the primary consumer goods sector increased by 1.23 percent, while the financial sector gained 0.65 percent. The industrial and property and real estate sectors posted more moderate gains, 0.20 percent and 0.15 percent, respectively.
The LQ45 index was also down 0.65 percent, settling at 970.078. Two stocks owned by business mogul Prajogo Pangestu emerged as the top losers. PT Chandra Astri Petrochemical (TPIA) dropped by 20 percent, while PT Barito Pacific (BREN) dropped by 18.18 percent.
According to Sukarno Alatas, the head of equity research at Kiwoom Sekuritas Indonesia, this situation was not entirely unexpected, given the remarkable gains they witnessed in 2023.
Prajogo's stocks, particularly BREN, are now susceptible to correction following the surge.
Meanwhile, PT Bank Jago (ARTO) led the gainers in LQ45 with a 4.62 percent increase. PT Mitra Adiperkasa (MAPI) also surged by 4.51 percent.
Despite the market downturn, Yugen Bersinar Sekuritas CEO William Surya Wijaya expressed optimism, citing positive economic data in Bank Indonesia's (BI) foreign exchange reserves.
BI reported on Monday that Indonesia's forex reserves reached $146.4 billion at the end of 2023, reflecting an increase from the previous month, which amounted to $138.1 billion.
"The IDX Composite movement still looks to be in a reasonable consolidation range, so the opportunity for an increase in the short term still looks quite limited," William said on Tuesday, as cited by bisnis.com.
He suggested that in the event of a reasonable correction, investors could seize the opportunity to accumulate stocks with robust fundamentals and substantial market capitalization.
