The Jakarta Composite Index (IHSG) fell 3.49 percent to 5,098.06 on Thursday (29/10), with foreign investors recording net sales of Rp1.52 trillion in the regular market. Analysts expect negative and volatile trading to continue on Friday (30/10).
Pressure came from several directions at once. Foreign outflows continued, the rupiah weakened, and investors remain uncertain about how Morgan Stanley Capital International (MSCI) will evaluate Indonesia’s market classification.
Technical outlook turns bearish
BRI Danareksa Sekuritas said the index broke support at 5,170 and closed well below its 20-day moving average, which sits near 5,646. The trend of decline still dominates, the firm said.
It sees the IHSG possibly testing Fibonacci support at 5,026 and then 4,942. Mirae Asset Sekuritas Indonesia’s senior technical analyst M. Nafan Aji Gusta said the index shows a downtrend pattern, with negative signals from Stochastics and RSI and declining volume.
Gusta listed support at 4,969 and 4,907, and resistance at 5,246 and 5,326. He said technical rebound opportunities remain open despite the negative sentiment.
Central bank sees short-term shock
Bank Indonesia Governor Destry Damayanti described the MSCI warning as a short-term shock. She assessed that market recovery remains possible if the issues are addressed.
Outside Indonesia, the Federal Reserve held its policy rate at 3.75 to 4 percent, though two officials favoured a 25 basis point increase. US tech shares also weighed on sentiment, with Alphabet reported down 12.6 percent after its quarterly profit missed expectations.
Related: Jakarta index falls 2.64% as Foreign investors sell Rp 912.37 billion · Foreign investors sell Rp 94 trillion of Indonesian stocks this year
Source: Federal Reserve
