JAKARTA – Several analysts expect the Jakarta Composite Index (IHSG) to remain under pressure and trade within a limited range, with a tendency to weaken on Tuesday (3/6).

The projection is based on various global and regional market sentiments, as well as the release of Indonesia’s trade balance data, which showed the lowest surplus in the past five years.

Chory Agung Ramdhani, Head of the Market Analyst Department at BRI Danareksa Sekuritas, said the trade balance release triggered a sharp decline in IHSG on Monday.

In his latest commentary, Chory also noted that foreign net selling, which reached IDR 2.81 trillion, contributed to the stock market pressure.

“At present, the IHSG is still expected to face limited downside risk, possibly reaching the 6,977 level,” said Chory.

Meanwhile, Mayang Anggita, Analyst at Panin Sekuritas, said Monday’s IHSG decline was driven by the steep drop in major bank stocks, as previously reported by IDNFinancials.com.

Technically, Mayang noted that the IHSG was unable to test the resistance level of 7,175–7,213 and closed below the 5-day moving average (MA5) at 7,138, indicating potential further downside toward the nearest support at 6,930–7,000.

“The dynamic support at the MA50 level of 6,830 is expected to help sustain the IHSG in order to maintain a solid bullish trend,” Mayang added.

In line with these views, the Retail Research team at CGS International Sekuritas projected that the IHSG would trade with mixed movement and a weakening bias, within the support range of 6,980–6,985 and resistance at 7,150–7,235.

This forecast corresponds with gains in most commodity prices and major benchmark indices in the US stock markets. (KR/ZH)