Phintraco Sekuritas has projected that the Indonesia Stock Exchange Composite Index (IHSG) will decline to the 7,080 level on Tuesday, May 20, 2025. For today’s trading session, IHSG is expected to move within a resistance range of 7,180, a pivot at 7,100, and support at 7,080.

Phintraco Sekuritas highlighted five stocks with strong profit potential, one of which is CLEO.

The firm explained that IHSG closed higher at 7,141—up 0.48%—on Monday (May 19, 2025), after previously experiencing a downward trend.

The downturn was attributed to negative sentiment stemming from Moody’s downgrade of U.S. debt ratings and weak industrial production and retail sales data from China in April, both of which dragged down Asian stock indexes.

“This situation temporarily pushed the IHSG into negative territory before it managed to rebound,” Phintraco Sekuritas wrote in its research note on Tuesday (May 20, 2025).

From a technical standpoint, Phintraco Sekuritas stated that the Stochastic indicator is currently in the overbought area, suggesting a short-term correction is likely. “IHSG today is expected to test the 7,080 level,” the firm added.

G7 Meeting

Phintraco Sekuritas further mentioned that investors will closely monitor the upcoming G7 meeting involving Finance Ministers and Central Bank Governors, taking place from May 20 to 22, 2025, in Canada. Key discussion topics include the global economy, economic resilience and security, the situation in Ukraine, financial crime, and artificial intelligence.

“This meeting serves as a preparatory event for the G7 Leaders’ Summit scheduled for June 15–17, 2025, in Canada,” the firm explained.

China Interest Rate Outlook

From China on Tuesday (May 20, 2025), Phintraco Sekuritas noted that markets are awaiting the decision by the People’s Bank of China on whether it will lower its 1-year and 5-year loan prime rates, which have been held steady for the past six months.

Expectations are that the 1-year loan prime rate in May will be reduced to 3% from 3.1% in April, while the 5-year loan prime rate is projected to decrease to 3.5% from 3.6%.

Phintraco Sekuritas recommended five stocks with earning potential under current market conditions: CLEO, LSIP, ESSA, SSIA, and AUTO.