Jakarta. The Composite Stock Price Index at the Indonesia Stock Exchange (IDX) plunged, dropping 43.88 points (0.62 percent) to fall below the 7000 level within the first hour of trading on Friday. Barito Renewables Energy (BREN) shares were hit hard, reaching the lower auto rejection limit (ARB).

Hendra Wardana, Founder of Stocknow.id, said the decline was likely influenced by the correction in BREN shares. Given that BREN has the largest market capitalization on the exchange, significant changes in its stock price can have a substantial impact on the overall movement of the IDX.

"When a large-cap stock experiences a drastic decline, it tends to pull the market index down," Hendra explained. "If the selling pressure on BREN and other large-cap stocks continues, there is a possibility that the IDX could break through the strong support level at 7,000. Breaking this support level could indicate that the IDX might enter a downtrend phase. It's important to monitor trading volume and overall market sentiment to confirm the further direction of movement."

The index fell by 43.88 points (0.62 percent) to 6,990.2 within the first hour of trading on Friday. A total of 4.54 billion shares were traded in the first hour of today's trading, with a transaction value of Rp 2.55 trillion and a trading frequency of 260,243 transactions.

Barito Renewables Energy shares plummeted 9.86 percent, hitting the ARB once again. The company has hit the ARB for three consecutive days since it resumed trading and was placed on the special monitoring board (PPK). As a result, Barito Renewables is subject to the full call auction (FCA).

In total, Barito Renewables has dropped nearly 30 percent over the past three days. Its shares fell by 10 percent on Wednesday, dropped 9.8 percent on Thursday, and weakened by 9.8 percent on Friday.

According to Hendra, the implementation of FCA on BREN shares can be viewed from two perspectives. On one hand, this action may be considered necessary to protect investors and maintain market stability in the short term. However, given BREN's strong fundamentals and its inclusion in the FTSE Global Equity Index, the implementation of FCA might seem excessive.

"In the long term, this action could be reconsidered," he said.

The FTSE Global Equity Index is a prestigious index used by foreign investors in making investment decisions. This index includes a total of 19,000 publicly traded companies with large, medium, small, and micro market capitalizations in 49 countries, including emerging markets.

"The implementation of FCA for 30 calendar days can create uncertainty for investors and potentially influence FTSE's decision to include BREN in its index. However, if the FCA is lifted before the FTSE review period ends and BREN shares show stability and strong fundamentals, the chances of being included in the FTSE index remain. The final decision will depend on FTSE's evaluation of BREN's stability and liquidity," Hendra explained.

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