Jakarta \u2014 Market analysts have warned of mounting pressure on\nIndonesia\u2019s Composite Stock Index (IHSG) in the coming week, citing\nescalating conflict in the Middle East. Hendra Wardana, a capital\nmarkets analyst and founder of Republik Investor, stressed that the\nintensifying tensions between Iran, the United States and Israel\nrepresent more than a political issue\u2014they pose genuine economic risks\nat the global level.<\/p>\n
According to Wardana, markets have already responded with a\npronounced risk-off pattern. Global investors are retreating from risky\nassets and seeking refuge in safe-haven investments. The analyst\nexplained that should the conflict disrupt tanker traffic through the\nStrait of Hormuz, global oil prices could spike significantly as markets\nreassess supply risks.<\/p>\n
\u201cThe impact could spread to global inflation, exchange rates, and\ninterest rate policies across various countries,\u201d Wardana told Antara\nnews agency in Jakarta on Sunday.<\/p>\n
For Indonesia\u2019s capital markets, pressure may emerge from two\nsources. First, potential capital outflows as foreign investors reduce\nexposure to emerging markets. Second, imported inflation risks from\nsurging global energy prices.<\/p>\n
If oil prices remain elevated, production costs for listed companies\ncould rise, squeezing profit margins. Wardana projected that under such\nconditions, the IHSG could weaken and test a key support level at 8,133.\nShould that level break, the psychological support at 8,000 would be the\nnext target, with the nearest resistance at 8,300.<\/p>\n
However, Wardana noted that not all sectors would be negatively\naffected. For retail investors with aggressive profiles, he suggested\nthat commodity sector momentum could be exploited with strict risk\nmanagement. Conversely, conservative investors should maintain a\nwait-and-see stance whilst monitoring conflict developments and foreign\nfund flows.<\/p>\n
\u201cIn hot geopolitical situations, success depends not simply on\nentering or exiting the market, but on reading sector rotations and\nkeeping risks under control,\u201d Wardana stated.<\/p>\n
Friday\u2019s closing data (27 February) showed the IHSG up 0.23 points or\n0.00 per cent at 8,235.49. The LQ45 index of 45 blue-chip stocks fell\n3.53 points or 0.42 per cent to 834.36. Trading volume reached 2,526,942\ntransactions worth Rp38.24 trillion, involving 47.64 billion shares. A\ntotal of 341 stocks rose, 315 fell, and 163 remained unchanged.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/analysts-warn-of-ihsg-pressure-risks-amid-middle-east-conflict-escalation-1772369608", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }