The Indonesia Stock Exchange (IDX) Composite Index (IHSG) closed\nhigher on Tuesday afternoon, driven by cheap valuations of Indonesian\nstocks and optimism over corporate financial performance for the first\nhalf of 2026. The IHSG closed up 108.24 points, or 1.74 percent, at\n6,340.02. Meanwhile, the LQ45 index of 45 leading stocks rose 8.89\npoints, or 1.42 percent, to 636.64.<\/p>\n
Market analyst and Founder of Republik Investor, Hendra Wardana,\nstated that the sustainability of the IHSG\u2019s strengthening in the coming\nperiod will be determined by three main factors: the consistency of\nreturning foreign capital flows, the stability of the rupiah so that it\ndoes not breach Rp18,000 per US dollar, and the ability of issuers to\ndeliver financial performance that exceeds market expectations.<\/p>\n
Hendra explained that corrections in major global markets,\nparticularly in technology stocks that previously experienced an\nartificial intelligence (AI) euphoria, have opened opportunities for\ninvestment rotation into emerging markets with cheaper valuations,\nincluding Indonesia. He noted that with the IHSG\u2019s relatively more\nattractive valuation compared to several regional markets, Indonesia has\nthe potential to become a destination for foreign capital inflows if\ndomestic macroeconomic conditions remain stable.<\/p>\n
Market expectations for improved corporate performance through\nsecond-quarter and first-half 2026 financial reports are seen as a\npositive catalyst for the near term. Sentiment is also supported by the\npotential for rupiah stability, backed by Bank Indonesia\u2019s commitment to\nmaintaining the exchange rate and Indonesia\u2019s high government bond\nyields compared to other countries.<\/p>\n
However, Hendra cautioned investors to remain vigilant about several\nrisks that could still hinder the market recovery process, with the most\nimportant being the rupiah exchange rate. He warned that if the rupiah\nweakens again and breaches the psychological level of Rp18,000 per US\ndollar, pressure on the domestic financial market could increase,\npotentially triggering renewed selling by foreign investors and raising\nconcerns about inflation and economic stability.<\/p>\n
The IHSG opened higher and remained in positive territory until the\nclose of the first trading session, continuing its gains through the\nsecond session. Based on the IDX-IC sectoral indices, ten sectors\nstrengthened, led by the energy sector which rose 3.58 percent, followed\nby the property and raw materials sectors which gained 2.95 percent and\n2.60 percent respectively. The healthcare sector was the sole decliner,\nfalling 1.23 percent.<\/p>\n
Top gainers among stocks included SULI, JGLE, TRON, MLPT, and AGAR,\nwhile KOKA, OMRE, PAMG, FILM, and JELI led the decliners. Total trading\nfrequency reached 2,896,000 transactions, with 47.79 billion shares\ntraded worth Rp21.54 trillion. Overall, 439 stocks advanced, 221\ndeclined, and 305 remained unchanged.<\/p>\n
In regional markets, Japan\u2019s Nikkei index strengthened 3.29 percent,\nChina\u2019s Shanghai index rose 1.79 percent, Hong Kong\u2019s Hang Seng index\nweakened 0.04 percent, South Korea\u2019s Kospi surged 3.56 percent, and\nSingapore\u2019s Strait Times index gained 0.45 percent.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ihsg-closes-higher-on-cheap-valuations-and-optimism-over-corporate-performance-1784631527", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }