TEMPO.CO, Jakarta - The Indonesia Composite Index (IHSG) on Wednesday, February 20, 2025, remained below the 6,906 level, with the greatest pressure coming from the financial sector. Kiwoom Sekuritas Capital Market analyst Oktavianus Audi noted that the index was struggling to break through the 20-day moving average (MA) resistance, while the Relative Strength Index (RSI) was starting to reverse and the Moving Average Convergence Divergence (MACD) indicated a weakening trend.

"Pressure on the IHSG today was driven by corrections in several large banking stocks. As of 10:39 AM, BBRI shares fell by 1.99 percent, while BBNI corrected by 1.55 percent," said Oktavianus when contacted on Thursday, February 20, 2025.

IHSG is estimated to close in the range of 6,760-6,770. If the index fails to hold above 6,770, there is potential for further decline with the next support at 6,725.

According to Audi, the domestic market is also influenced by global sentiment, especially after the Federal Reserve's statement about increasing inflation concerns. This is related to the tariff policy that will be implemented by former U.S. President Donald Trump, which is now once again a concern for global investors.

"Trump plans to raise tariffs by 25 percent for the automotive, semiconductor, and pharmaceutical sectors. This policy is at risk of triggering global economic uncertainty as well as increasing inflation pressure," said Oktavianus.

This uncertainty also drives investors to shift to safe-haven assets. The current world gold prices have soared above US$ 2,940 per troy ounce at 10:44 AM, indicating an increasing demand for the precious metal amid market volatility.

Amid global and domestic pressures, investors are advised to remain cautious about the potential further decline of the IHSG, especially if the index fails to maintain its critical support level.

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