The Composite Stock Price Index (JCI) touched a 2025 record high on Monday (21/7/2025) at 7,398. Although on Tuesday (22/7/2025), JCI closed down at 7344, a number of analysts and retail investors believe JCI will continue its upward trend.
In between jobs, Dion (32) opens a stock trading app on his phone. This private employee in the advertising sector does not want to miss a trading moment, especially when the stock market is diving.
" So you can take profit," he said when contacted on Tuesday (07/22/2025).
JCI did show a significant strengthening trend for 11 consecutive trading days until Monday, July 21, 2025. On that date, the JCI jumped 1.18% or 86.27 points, reaching a level of 7,398.19. This gain made JCI one of the best performing global stock indices in July.
However, on Tuesday, JCI closed in the red zone for the first time after 11 consecutive days in the green zone, losing 0.72% or 53.45 points to 7,334.74.
This weakness was largely due to the decline in conglomerate stocks, especially from the Prajogo Pangestu group, such as Barito Pacific (BRPT) which fell nearly 8% and Chandra Asri Pacific (TPIA) which fell more than 5%.
Factors Driving JCI Strengthening
According to Capital Market Observer, Budi Frensidy, the strengthening of the JCI was mainly supported by the Initial Public Offering (IPO) of conglomerate stocks. He explained that the IPOs of several conglomerate stocks that successively experienced an auto reject top (ARA) played a significant role.
"Mainly I think because of the IPO of several conglomerate stocks, yes, which are more than 5 days in a row or anyway they auto reject the top continuously because, yes, indeed the back up is a large conglomerate, yes," he told Suar, (22/7/2025).
In addition, the movement of foreign investors is also an important determinant. He explained that foreign net buy will determine the stability of the JCI going forward. Although the year to date foreign trading volume may look small, its impact on the index is huge as their transactions are focused on largecap stocks.
In the property sector, he observed the expansion of large groups such as Djarum, the Prajogo Pangestu group, and Sinar Mas which are increasingly expansive. Meanwhile, the movement of commodity stocks tends to be in line with global commodity prices.
The potential inclusion of Indonesian stocks, particularly from the Prajogo Pangestu group, into global indices such as MSCI will also have a positive effect. This will attract hedge funds and foreign institutional investors, given that many foreign investors use robotic or automated trading.
"If there is a stock that does go into the index, it will go into its portfolio by benchmarking or indexing," he explained, emphasizing that this would be a positive effect on the Indonesian capital market.
Mirae Asset Sekuritas Indonesia Senior Technical Analyst, Nafan Aji, said, "The recent increase in JCI tends to be driven by domestic investors, both retail and institutional. This happened because foreign investors continued to record net sell, whose value was close to IDR 60 trillion," he said as quoted by CNBC
Noted, foreign investors made anet sell (net sell) worth IDR 180.30 billion across the stock market. This figure extends the selling trend that has been going on since the beginning of the year. Cumulatively, the total net sell of foreign investors since the beginning of the year has reached IDR 59.70 trillion. This continuous selling indicates a shift in sentiment or strategy from foreign investors towards the domestic stock market.
Nafan said further, "Going forward, domestic investors, they will still dominate the market, especially in terms of investment value."
