DIGIVESTASI – The Composite Stock Price Index (IHSG) experienced a significant decline at the beginning of the week, falling to 7,080.47, down by 1.17% on Monday (January 6, 2025). The weakening of the IHSG reflects global sentiment, which is still filled with challenges.

Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Securities, explained that global sentiment continues to put pressure on the market. "Concerns have increased due to the spread of the HMPV virus, which, although it has existed since 2001, has now resurfaced as a threat to the global economic recovery. The market worries that a situation similar to the COVID-19 pandemic could repeat itself," he said in an interview with Investor Daily on Monday (January 6, 2025).

In addition, market participants are closely monitoring the results of the Federal Open Market Committee (FOMC) meeting, which may provide insights into the Fed's policy, particularly regarding the potential for interest rate cuts. "U.S. employment data, which will be released this week, is also a factor that has led investors to adopt a wait-and-see approach," Nico added.

Although the IHSG has experienced a significant decline, Nico mentioned that the chance for a rebound still exists, albeit small. "The potential for the January Effect is shrinking, especially with Donald Trump's inauguration on January 20, 2025, which is expected to increase market volatility, particularly in emerging markets like Indonesia," he explained.

In this situation, banking and mining stocks have drawn analysts' attention. According to Ekky, these sectors have undergone significant corrections, making their valuations more attractive for consideration.