After six consecutive drops, the IDX Composite slightly recovered on Friday, as analysts suggested the market may struggle to surpass key resistance levels in the near term.
he Indonesia Stock Exchange (IDX) Composite index managed a modest rebound on Friday, rising by 0.09 percent to close at 6,983.86. After six days of declines, the index briefly touched 7,032 before narrowing its gains in the final minutes of trading.
While the index posted a slight increase, sectoral performance was mixed. The energy sector led the charge with a 0.61 percent gain, followed by technology at 0.33 percent, infrastructure at 0.21 percent, health at 0.16 percent and financials at 0.05 percent.
However, five other sectors recorded losses, with the industrial sector leading the declines, falling by 0.96 percent. Other sectors in the red included non-primary consumer goods, which suffered a 0.74 percent loss, raw materials, which decreased by 0.34 percent, transportation and logistics, which declined by 0.19 percent and property and real estate, which saw a 0.01 percent drop.
Total trading volume for the day reached 19.79 billion shares, with a transaction value of Rp12.38 trillion (US$787 million). Of the 786 stocks traded, 296 increased, 288 declined and 202 remained unchanged.
In the LQ45 index, PT ESSA Industries Indonesia (ESSA) posted the largest gain, jumping 7.95 percent, followed by PT Sido Muncul (SIDO), up 5.56 percent, and PT Bank Syariah Indonesia (BRIS), rising 4.17 percent.
On the downside, PT Sarana Menara Nusantara (TOWR) led the losses, falling by 6.15 percent, followed by PT Bank Jago (ARTO), down 4.68 percent and PT Kalbe Farma (KLBF), down 3.41 percent.
While the market showed some signs of recovery, caution prevailed amid concerns over global economic developments. Investors are closely watching the impact of the United States Federal Reserve's recent interest rate cut, which lowered rates by 25 basis points.
Local analysts remain cautious about the outlook for the IDX Composite index.
Mitra Andalan Sekuritas analyst Arwendy Rinaldi Moechtar suggested that the IDX Composite would struggle to break through the 7,500 level in the short term.
"It's tough to see the IDX Composite hitting 7,500 or higher. We may test the support level around 7,000, but a rally to 7,500 seems difficult," he said on Thursday, as quoted by cnbcindonesia.com.
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