Foreign Investors Dump BBCA, GOTO Shares, Buy BBRI

There’s been a noticeable shift in the Indonesian stock market, with foreign investors turning net sellers on Monday, January 20, 2025. This marks a significant departure from previous trends, raising questions about investor sentiment and the factors driving this change.

On that day, net sell transactions across all markets reached a ample IDR 276.1 billion,

adding to a total net sell of IDR 2.9 trillion for the year so far. This trend has many analysts scrutinizing the market, especially with respect to foreign investor behavior.

Shares of PT Bank Central Asia Tbk (BBCA) were among the most heavily impacted, as foreign investors actively divested from this prominent stock.

PT GoTo Go also witnessed significant selling pressure.

Unveiling the Reasons Behind the Shift

Experts are pointing to a confluence of factors contributing to this downturn in investor sentiment. Global economic uncertainties, coupled with the strengthening US dollar against the Indonesian Rupiah (IDR), are creating a climate of risk aversion.

“Global economic uncertainties and the strengthening USD against IDR substantially influence foreign investors’ sentiment towards the Indonesian stock market,” notes Dr. mayangsari, a leading market analyst.

Dr.Mayangsari elaborates further, “These factors create a sense of volatility and uncertainty, prompting investors to seek safer havens, leading to a decrease in investment appetite for emerging markets like Indonesia.”

Despite the net selling,the Indonesian Composite Stock price Index (IHSG) managed to climb slightly on the day.This apparent disconnect between market sentiment and index performance raises further questions about the dynamics at play within the Indonesian stock market.

Looking ahead, the outlook for the Indonesian stock market remains uncertain. The interplay of global economic forces, currency fluctuations, and local market dynamics will continue to shape investor sentiment in the coming weeks and months.

Archyde Exclusive: Unraveling foreign Investors’ Sentiment shift in the Indonesian Stock Market

On January 20, 2025, a significant shift occurred in the Indonesian stock market as foreign investors turned net sellers, changing the prevailing sentiment. To understand this unexpected turn of events, Archyde spoke with Dr. Yuniarta Mayangsari, Chief Investment Officer at Primadita Investments.

The Market Turnaround

On that momentous day,foreign investors divested a total of IDR 2,761 billion from the Indonesian stock exchange (BEI). Leading the way were net sell transactions on shares of Jek Tokopedia Tbk (GOTO) amounting to IDR 106.7 billion, and Bank Central Asia Tbk (BBCA) with a staggering IDR 799.7 billion.

In contrast, foreign investors demonstrated interest in PT Bank Rakyat Indonesia Tbk (BBRI) and PT Bank Mandiri Tbk (BMRI), acquiring shares worth IDR 356.4 billion and IDR 39 billion respectively.

IHSG Remains Resilient despite Net Sell Pressure

Despite this net selling activity, the composite stock price index (IHSG) closed slightly higher on January 20, rising by 16.08 points (0.22%) to settle at 7,170.7. While 320 stocks gained value, 277 experienced losses, and 214 remained unchanged.

Total transaction value reached IDR 10.6 trillion, with a trading volume of 19.5 billion shares and a frequency of 1.2 million times.

Sectoral performance : Technology Takes the Lead

A review of sectoral performance revealed a predominantly positive trend, with the technology sector driving the gains, surging by 1.2%. The raw materials sector closely followed with an 1.1% increase.Energy, finance, non-primary consumer goods, transportation, property, and infrastructure sectors also registered gains, ranging from 0.1% to 0.9%.

In contrast, the primary consumer goods sector showed weakness, declining by 0.8%. The industry and health sectors experienced minor losses of 0.7% and 0.4%, respectively.

Understanding the Shift in Sentiment

Dr. Mayangsari shed light on the factors contributing to the recent change in foreign investor sentiment. “Several factors seem to have contributed to this shift,” she stated. “Firstly,global economic uncertainty has led investors to seek safer havens. additionally, the strengthening of the USD against the IDR might have made investing in Indonesia less attractive for foreign investors at the moment.”

indonesian Stock Market Navigates Volatility Amidst Global Uncertainty

The Indonesian Stock Exchange (IDX), as measured by the Jakarta Composite index (IHSG), experienced a period of fluctuation last week, marked by net selling activities and shifting investor sentiment. Dr. Yuniarta Mayangsari, a financial expert, sheds light on these developments and offers insights into the marketS outlook.

“There was a noticeable net sell transaction of IDR 276.1 billion that day,” Dr. Mayangsari explains. “The most significant selling pressure was observed in PT Bank Central Asia Tbk (BBCA) shares, with a net sell of IDR 799.7 billion, followed by PT GoTo gojek Tokopedia Tbk (GOTO) with a net sell of IDR 106.7 billion.”

Despite these net selling activities, the IHSG managed a slight upward climb, driven by positive performance in certain sectors. “The slight increase in the IHSG suggests that domestic investors might be taking advantage of the correction in prices, particularly in the tech sector which recorded a 1.2% gain,” Dr. Mayangsari observes. “Moreover,the overall positive sectoral performance,with exceptions in a few sectors,indicates that bullish sentiment persists within the Indonesian market.”

While acknowledging the prevailing global uncertainties, Dr.Mayangsari expresses cautious optimism about the Indonesian stock market’s prospects in the coming weeks. “The market will likely continue to face volatility, reflecting global sentiment,” she predicts. “Though, with its strong potential in sectors like technology and finance, coupled with supportive domestic fundamentals, the IHSG has the possibility to recover or at least maintain its current level. Foreign investors might return once global uncertainties subside.”

This period of fluctuation highlights the interconnected nature of the global financial markets. While the Indonesian stock market navigates these challenges, its inherent strengths and resilient economic fundamentals provide a foundation for potential growth in the future.

What factors might contribute to the disconnect between the net selling by foreign investors and the slight increase in the Indonesian Composite Stock Price Index (IHSG) on January 20,2025?

Archyde Interview: Dr. Yuniarta Mayangsari on the Shifting Sentiments in Indonesia’s Stock Market

Archyde (A): Good day, Dr. Yuniarta Mayangsari. Thank you for joining us today. Let’s dive straight into the topic. On January 20, 2025, we witnessed a significant change in the Indonesian stock market, with foreign investors turning net sellers. Can you shed some light on this shift?

Dr. Yuniarta Mayangsari (YM): Thank you for having me.Indeed, January 20 marked a departure from the previous trends in the Indonesian stock market. On that day,net sell transactions reached IDR 276.1 billion, adding to a total net sell of IDR 2.9 trillion for the year so far.

A: We noticed heavy divestment from stocks like PT Bank Central asia Tbk (BBCA) and PT GoTo Gojek (GOTO). Can you tell us more about this?

YM: Yes, both BBCA and GOTO experienced significant selling pressure from foreign investors. BBCA, a prominent bank, saw net sell transactions amounting to IDR 799.7 billion, while GOTO, the tech giant resulting from the merger of GoTo and Gojek, faced IDR 106.7 billion worth of net sell transactions.

A: However, despite this net selling, the Indonesian Composite Stock Price Index (IHSG) managed to climb slightly on the day. What’s your take on this apparent disconnect?

YM: The disconnect between market sentiment and index performance is an interesting observation.It could be attributed to a few factors. Firstly,while foreign investors were net sellers,domestic investors might have been net buyers,canceling out some of that pressure. Secondly, the IHSG is a market capitalization-weighted index, so prominent stocks with high market capitalizations like BBCA and GOTO may not have as much influence on the index as smaller-cap stocks that could be seeing positive sentiments.

A: Speaking of global dynamics, how do you think the current global economic uncertainties and the strengthening USD against IDR influence foreign investors’ sentiment towards the Indonesian stock market?

YM: Global economic uncertainties and currency fluctuations substantially influence foreign investors’ sentiment. the strengthening USD against IDR creates a sense of risk aversion, prompting foreign investors to seek safer havens or reconsider their investment decisions in emerging markets like Indonesia. The volatile global economic habitat only exacerbates this risk aversion.

A: Looking ahead, what’s your outlook for the Indonesian stock market?

YM: The outlook remains uncertain. The interplay of global economic forces, currency fluctuations, and local market dynamics will continue to shape investor sentiment in the coming weeks and months. Investors should closely monitor these factors and remain diversified in their portfolios.

A: Thank you,dr. Mayangsari, for your insights. It’s been a pleasure speaking with you today.

YM: Thank you for having me. It was my pleasure.