JAKARTA – Several positive sentiments are set to colour the Indonesian stock market, potentially supporting a rise in the Composite Stock Price Index (IHSG) in June trading this year.

Head of Research at Kiwoom Sekuritas Indonesia, Liza Camelia Suryanata, said the IHSG historically tends to be green or record gains in June.

This projection is supported by the window dressing season at the end of the first semester, as well as investor positioning ahead of the second quarter financial report releases from listed companies.

“The IHSG is projected to move sideways with an upward tendency in June 2025, within the range of 7,000–7,300, with a tendency to break through the 7,300 resistance,” Liza said in a monthly Market Outlook, delivered late last week.

The signal of an increase, Liza said, will strengthen if supported by several positive sentiments. These include foreign investor accumulation, economic stimulus launched by the government, and rupiah exchange rate stability.

On the other hand, several policies at the end of May also have the potential to support the IHSG’s rise this month.

These include Bank Indonesia’s (BI) interest rate cut of 25 basis points (bps) to 5.50%, followed by a reduction in deposit insurance rates from 4.25% to 4%.

Liza believes the interest rate cuts will encourage investors to seek higher profits beyond savings and deposits. “Namely the stock market and mutual funds,” Liza said.

Nevertheless, Liza emphasised that investors still need to be cautious about potential volatility in the global market.

Sectors that are attractive to watch this month include consumption, finance, and sectors based on public mobility.

As previously reported by IDNFinancials.com, the IHSG ended May trading in the red zone, with a slight decline of 0.32% to 7,175.82. However, since the beginning of the month, the index has risen 6.04%. (KR/ZH)