JAKARTA - The Composite Stock Price Index (JCI) is overshadowed by a myriad of sentiments this week. Phintraco Sekuritas in its research predicts that the index will rebound today, Monday, February 2.
On Friday, January 30, the JCI closed up 97.4 points (1.18 percent) to 8,329.6. JCI volatility tends to subside after two previous trading days experienced significant turmoil due to warnings from MSCI that Indonesia's position could be downgraded from emerging market to frontier market.
"Investors tend to wait and see the developments of the efforts of the OJK-BEI to meet the MSCI requirements before May 2026," wrote Phintraco Sekuritas.
As planned, the Indonesia Stock Exchange (IDX) will hold a meeting with MSCI regarding the free float methodology on Monday. The meeting will take place online. The meeting with MSCI will be represented by Friderica Widyasari Dewi or Kiki as the Acting Officer (Pjs) of the Chairman and Vice Chairman of the OJK Commissioner Board.
Meanwhile, President Prabowo has instructed an increase in the investment limit of pension and insurance funds to 20 percent from the previous 8 percent.
The government also plans to accelerate the demutualization of the IDX and increase the free float from 7.5 percent to 15 percent to improve governance and information disclosure. Andantara also opened the option to become a shareholder of the IDX, after the demutualization process is completed.
These reform steps and incentives are expected to strengthen the structure of the Indonesian capital market in the medium to long term.
"However, investors will still pay attention to the development of the implementation of policies in the future," said Phintraco Sekuritas.
Beyond that, a week from now, there will be the release of several important domestic economic indicators, namely the PMI Manufacturing index, the trade balance, and inflation which is scheduled for February 2.
Furthermore, the release of the economic growth on February 5, as well as foreign exchange reserves and property price indices on February 6.
Technically, the JCI is expected to consolidate in the range of 8,150-8,600 next week.
"If the JCI is able to stay above 8,600, it has the potential to continue its rebound," explained Phintraco Securities.
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