IHSG Faces Pressure from Global Sentiment and Profit Taking

The Indonesia Stock Exchange Composite Index (IHSG) is expected to weaken on Tuesday, May 27, 2025, as global market sentiment and domestic profit taking weigh heavily on trading. Today’s movement is shaped by a combination of international factors and internal dynamics, prompting investors to adopt a more cautious approach.

Global Factors Cast a Shadow

IHSG closed down 0.36% at 7,188 yesterday, reflecting the growing uncertainty from ongoing trade tensions between the United States and the European Union. President Donald Trump’s plan to impose new tariffs in July 2025 has triggered additional caution in global markets. Investors are also awaiting key US data releases, such as Durable Goods Orders and Consumer Confidence, both expected to show declines, along with Germany’s GfK Consumer Confidence report. These factors have collectively dampened overall market sentiment.

Domestic Dynamics and Investment Strategies

Locally, the rupiah’s depreciation to Rp16,249 per US dollar has added to market pressure. Following a robust rally throughout May, many investors are now taking profits, especially with June historically marked by higher volatility. Analysts highlight defensive stocks like BBRI, TLKM, and those in the energy sector as more resilient options during this correction. It is recommended that investors maintain strict risk management and consider gradual accumulation of quality shares during market pullbacks.

Tips and Market Issues

In times of heightened volatility, a prudent approach is to focus on fundamentally strong stocks, employ dollar cost averaging, and remain disciplined with investment plans. Amid ongoing fluctuations, market watchers are closely observing the role of foreign capital, the impact of interest rates, and which sectors may prove most resilient to global pressures. These considerations underscore the importance of long-term strategy and portfolio diversification in navigating uncertain markets.

IHSG’s Outlook Amid Global and Domestic Pressures

Overall, today’s IHSG weakness is driven by both global sentiment and domestic profit taking. However, opportunities for accumulating quality stocks remain for those who approach the market with careful analysis and long-term perspective.

IHSG Prospects and Challenges

The IHSG will continue to move dynamically amid global headwinds and seasonal volatility. Adopting the right investment strategy and disciplined risk management remains key to overcoming market challenges ahead.