Old Giants Comeback? Time to Look at Big Caps Again
In recent weeks, global and domestic stock markets have been caught in a tug-of-war between optimism about interest rate cuts and concerns about economic slowdown. From an external perspective, the US Federal Reserve (The Fed) has started signalling monetary policy easing in the second half of 2025, which typically provides a tailwind for emerging market economies, including Indonesia.
Domestically, Indonesia's economic performance remains solid amid global turbulence, but investors remain selective in deploying capital — particularly after the IHSG touched an all-time high of 7,680 on 29 July before correcting -2% to around 7,500. It may seem minor at first glance, but this carries significant implications for our investment strategy.
What's Happening in the Market?
The recent IHSG correction has been largely driven by declines in several major conglomerate stocks (WoW as per (6/8)):
AMMN: -7.5%
BREN: -7.1%
BRPT: -2.3%
Why is this significant? Because these three account for approximately 38% of total market capitalisation and 37% of the average daily transaction value of the IHSG. This means their movements have a substantial impact on the index.
While these
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