The Jakarta Composite Index (IHSG) is projected to strengthen this week, with the potential to test the psychological level of 8,400. A combination of global and domestic sentiments, including MSCI’s approval of Indonesia’s stock exchange reforms, is viewed as the main catalyst driving the index.

Head of Research at Phintraco Sekuritas, Valdy Kurniawan, stated that technically the IHSG is expected to move within a support level of 8,250 and a resistance level of 8,380. He added that the composite index has a strong opportunity to test 8,400 if it can remain stable above 8,350. “IHSG is projected to move within the 8,250–8,380 range this week,” Valdy said in a research publication quoted on Monday (February 23, 2026).

From external factors, Wall Street’s rally at the end of last week provided positive sentiment. According to Valdy, investors welcomed the US Supreme Court’s decision to annul President Donald Trump’s reciprocal tariff policy, which is expected to ease corporate cost burdens and inflationary pressures.

Nevertheless, he noted that the market remains cautious regarding Donald Trump’s latest executive order concerning global tariffs ranging from 10% to 15%.

Domestically, market participants are also monitoring developments in the Agreement on Reciprocal Trade (ART) following the US decision. Legally, Indonesia is considered not yet bound, as the agreement still requires ratification by the House of Representatives (DPR).

Another strong sentiment stems from Morgan Stanley Capital International’s (MSCI) approval of all proposed solutions submitted by the Indonesia Stock Exchange (BEI) and the Financial Services Authority (OJK). However, Valdy reminded investors that the market will continue to assess the implications of the requirement to increase the free float to 15% for 267 listed companies.

In line with these market prospects, Phintraco recommends several stocks for investors to watch this week, including PT Mayora Indah Tbk. (MYOR), PT Elnusa Tbk. (ELSA), and PT AKR Corporindo Tbk. (AKRA). Additionally, PT Semen Indonesia (Persero) Tbk. (SMGR), PT Pyridam Farma Tbk. (PYFA), and PT Semen Baturaja (Persero) Tbk. (SMBR) are also included in the recommendation list.