Economic Uncertainty Threatens IHSG Rebound, Analyst Warns
Reporter
April 11, 2025 | 09:06 am
TEMPO.CO, Jakarta - Director of PT Reliance Sekuritas Indonesia Tbk, Reza Priyambada, stated that the current rise of the Composite Stock Price Index (IHSG) into the green zone does not guarantee a lasting recovery.
IHSG rebounded after U.S. President Donald Trump delayed the imposition of tariffs on Thursday, April 10, 2025. Last Thursday, the IHSG strengthened by 5.02 percent to reach 6,267.8 points.
"Amid a positive market, especially as IHSG is starting to rise, there will undoubtedly be those who take advantage of the increase for profit-taking instead of the lingering uncertainty, making the rise of IHSG unlikely to be sustained," Reza stated in a written statement quoted on Friday, April 11, 2025.
Reza explained that the strengthening of IHSG is in line with the impact of the rise in several global stock exchanges following the response to the postponement of the implementation of Trump's tariffs. Market players' perception sees at least a delayed retaliatory response from trading partner countries.
He cautioned that not all market participants share the same view, so the uncertainty that has kept the IHSG in the green zone should be noted. On the other hand, he mentioned that the positive sentiment from within the country also does not guarantee the ability to withstand the weakening of the IHSG.
He cited that many issuers have announced their annual financial performance, with the majority showing growth, and many issuers are distributing dividends. "In reality, such sentiment seems to be overlooked, and market players are more responsive to Trump's tariff policy, which may not directly relate to the fundamental aspects of the issuers," he said.
Therefore, Reza indicated that the movement of the IHSG will be vulnerable to the existing sentiment in the range of 6,100-6,400. According to him, if this level cannot be maintained, IHSG can't grow above 6,500. "This is what needs to be preserved. If this level is not maintained, then IHSG can't be targeted to move above 6,500," he said.
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