Indonesia's benchmark stock index is set to open higher on Monday, buoyed by a surge in global risk appetite and technical indicators pointing to a reversal in local market momentum.
The Jakarta Composite Index (IHSG) is projected to gain ground as investors digest positive developments in the geopolitical landscape, particularly regarding tensions in the Middle East.
The outlook follows a volatile previous week where selling pressure dominated the local market.
Data from the closing session showed that 342 stocks declined, compared to 332 that advanced and 141 that remained unchanged.
This broad-based correction had weighed on sentiment, but the tide appears to be turning as external catalysts provide fresh buying interest.
Herditya Wicaksana, a technical analyst at MNC Sekuritas, indicated that the IHSG retains strong potential for an upward move at the start of the week.