Foreign Investors Are Eyeballing These 10 Stocks as the Jakarta Composite Index Gains Momentum
The Indonesian stock market is showing signs of renewed vigor. The Jakarta Composite Index (IHSG) managed to maintain its positive momentum, closing in the green zone for the second consecutive day. On Tuesday’s trading session, May 5, 2026, the index surged by a solid 1.22%, ending the day at the 7,057.11 level. This upward trend suggests a growing confidence among local traders even as global dynamics remain complex.
Massive Liquidity and Market Breadth
The trading volume on Tuesday was nothing short of impressive. Total transaction value reached a staggering Rp23.9 trillion, involving approximately 43.92 billion shares exchanged across 2.42 million transactions. It wasn't just a few heavyweights pulling the index up; the market breadth was relatively balanced but leaned toward the bulls. Statistics show that 342 stocks climbed higher, 314 shares faced a decline, and 163 remained unchanged. This distribution indicates that while the index is rising, there is still significant volatility and selective picking happening on the floor.
The Paradox of Foreign Capital Flows
Interestingly, the overall rise in the index doesn't tell the whole story. While local sentiment pushed the IHSG higher, foreign investors were actually spotted offloading their positions. Data reveals a total foreign net sell of Rp518.39 billion across all markets. When we break down these figures, the regular market saw a net outflow of Rp317.94 billion, while the negotiation and cash markets recorded an additional net sell of Rp200.44 billion. This divergence between the index's performance and foreign net flow often signals a period of profit-taking by international funds or a strategic rebalancing of portfolios.
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Where is the Smart Money Going?
Despite the headline figure of a net sell, foreign investors aren't exiting the market entirely. On the contrary, they are being highly selective. Several blue-chip and high-growth stocks have become the preferred targets for foreign accumulation. According to data from Stockbit, while the broader market saw outflows, these specific 10 stocks stood out as the 'foreign favorites,' capturing significant buy orders during Tuesday's rally. This 'cherry-picking' strategy suggests that international players are still finding value in specific sectors of the Indonesian economy, even if they are reducing their overall exposure to the broader index.