IHSG Reclaims the 7,000 Level: Why Foreign Investors Are Betting on BBRI and BRPT Despite Net Sells

The Indonesian stock market showed significant resilience during Tuesday's first trading session. The Jakarta Composite Index (IHSG) successfully clawed its way back into positive territory, marking a notable recovery after a shaky start. By the end of Session I, the index climbed by 0.83%, or 57.90 points, closing at the 7,029.86 level. This rebound is particularly impressive considering the index had dipped to a daily low of 6,921.6 earlier in the morning.

Market activity remained robust throughout the session, with the total transaction value reaching a substantial Rp9.21 trillion. This liquidity was driven by the trade of roughly 25.34 billion shares. While the headline numbers look green, the underlying data reveals a more complex narrative regarding capital flows and investor sentiment.

The Foreign Flow Paradox

Interestingly, the overall rise in the index wasn't fueled by a broad influx of foreign capital. In fact, international investors recorded a net sell of Rp102.61 billion during the first half of the day. This suggests that domestic players might be doing the heavy lifting to push the index higher, or that foreign capital is being highly selective about which sectors to support.

Large-cap stocks in the technology and energy sectors faced the brunt of the foreign exit. These sectors, which have been volatile recently, saw significant outflows as investors seemingly reshuffled their portfolios. However, it wasn't all red for foreign participation; certain pillars of the Indonesian economy, specifically the banking and basic materials sectors, managed to attract foreign accumulation.

BBRI and BRPT Take the Spotlight

Bank Rakyat Indonesia (BBRI) emerged as a clear favorite for international investors. Leading the list of top foreign buys, BBRI’s share price surged by 3.95%, reaching Rp1,360 per share. The banking giant continues to be a go-to safety net for those looking for stability amidst broader market fluctuations.

Similarly, Barito Pacific (BRPT) saw significant interest, reinforcing the trend that foreign money is currently favoring established industrial and financial players over speculative growth stocks. On the flip side, the tech darling GOTO continues to struggle for momentum. After a sharp 5.56% decline on Monday, GOTO’s shares remained stagnant at Rp51 per share by the end of Tuesday's first session, failing to join the broader market recovery.

Market Breadth and Sentiment

The market’s overall health looked positive with gainers outnumbering losers. A total of 346 stocks ended the session in the green, while 297 stocks declined, and 169 remained unchanged. This distribution indicates that while the index is being buoyed by heavyweights like BBRI, there is a relatively broad participation in the rally across various mid-cap and small-cap stocks. Investors will be keeping a close eye on the second session to see if the 7,000 support level holds or if the foreign selling pressure in tech and energy intensifies.