Research

No More Love For IHSG?

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Algo Research Team

Market | Nov 17, 2022 | Views: 22

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Key Summary:

  • IHSG has been trading sideways with no clear catalysts
  • IDX Technology a clear winner this month
  • Foreign investors have been selling since US CPI data & China reopening

Since the end of October, IHSG has been trading pretty much sideways around 6,950-7,100. This is occurring despite a decent month in terms of domestic economic reports or broadly in-line to higher than expected 3Q22 results from the major large cap stocks. This reminds us during the same period last year, where IHSG was also trading sideways from Oct-Dec 2021. Trading sideways while good news are out is typically an indication of profit taking or sell on news, which we think is happening lately. Hence, there is no clear catalyst for now to decide the direction of the market.


The first 2 weeks of November have seen IDX technology performing +6% MTD, easily beating all the other sectors. Light positioning, lower than expected US CPI, declining USD and bond yields all have played well for the technology sector, with EMTK, BUKA, GOTO, BELI leading the sector while MPPA and ARTO, which are not in IDX tech but tech-related, also outperformed. On the other side, IDX energy underperformed the most, down -4% led by coal stocks.

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