Jakarta. After the extended Eid holiday, the Indonesia Stock Exchange (IDX) saw a 2.47 percent drop in the composite stock price index, falling to 7,087 from the previous week's 7,286.

According to NH Korindo Sekuritas Indonesia (NHKSI), the index broke its consolidation trend of the past two days, triggered by significant foreign net selling, totaling almost Rp 3 trillion.

Market sentiment is still adjusting to the chaotic regional market following the long Eid holiday. NHKSI emphasizes the need for JCI to establish solid support to avoid dropping below the psychological level of 7,000.

"However, given the global uncertainties, including the fading prospect of a US interest rate cut and the escalating Middle East conflict, along with the rupiah exchange rate still above Rp16,100 per dollar, market participants are understandably nervous, leading them to reduce their portfolio positions," it said

NHKSI anticipates continued high volatility, with immediate resistance expected at the 7,220-7,300 level. "Therefore, we advise investors/traders to avoid being too aggressive at this time."

The average daily stock transaction frequency increased by 36.53 percent to 1.37 million transactions from 1.01 million the previous week.

Additionally, the average daily stock transaction value rose by 26.01 percent to Rp 15.64 trillion from Rp 12.41 trillion, while the average daily stock transaction volume increased by 10.34 percent to 17.37 billion shares from 15.75 billion shares.

Market capitalization also changed, increasing by 1.42 percent from Rp 11,887 trillion to Rp 11,718 trillion by the end of the week.

Foreign investors recorded a net sell value of Rp 838.17 billion on the day, with a net buy value of Rp 12.12 trillion throughout 2024.