The Indonesia Stock Exchange (IDX) Composite Index (IHSG) closed\nlower on Monday, tracking a regional downturn as markets reacted to\ngeopolitical tensions in the Middle East. The IHSG weakened by 1.63\npoints, or 0.03 percent, to 6,234.50, while the LQ45 index of top stocks\nbucked the trend, rising 2.69 points or 0.43 percent to 623.93.<\/p>\n
Associate Director of Research and Investment at Pilarmas Investindo\nSekuritas, Maximilianus Nico Demus, noted that Asian bourses started the\nmonth on a weak footing, influenced by developments in the Middle East\ndespite US President Donald Trump calling off a planned strike on Iran.\nTrump stated that Saudi Arabia and other key Middle Eastern allies had\nurged him to halt the attack and continue negotiations, while also\npressing for the swift reopening of the Strait of Hormuz. However,\nmarket participants remain sceptical about de-escalation between the US\nand Iran, given the repeated failures to secure a permanent peace\nagreement.<\/p>\n
From China, a private survey indicated that the manufacturing PMI\nfell to a four-month low of 50.9 in July 2026, down from 51.7 in June\nand missing the 51.5 forecast. Meanwhile, the People\u2019s Bank of China\nreaffirmed its commitment to supporting the economy through moderately\naccommodative monetary policy, flexible use of instruments, and ensuring\nample liquidity.<\/p>\n
Domestically, Indonesia\u2019s manufacturing index rose to 50.2 in July\n2026 from 46.9 in June, though the market viewed the growth as sluggish\ndue to expensive raw materials, declining exports, and cautious business\nsentiment. The Central Statistics Agency reported deflation of 0.14\npercent month-on-month, with annual inflation at 2.88 percent, below\nmarket expectations of 3.2 percent and within Bank Indonesia\u2019s target\nrange of 1.5 to 3.5 percent. Additionally, Indonesia\u2019s trade balance\nrecorded a deficit of 450 million US dollars in July.<\/p>\n
The IHSG opened higher but moved into negative territory by the end\nof the first trading session and remained in the red through the close.\nFour sectors posted gains, led by consumer non-cyclicals which rose 1.47\npercent, while seven sectors declined, with technology falling the\ndeepest at 1.42 percent. Total trading volume reached 37.64 billion\nshares worth Rp14.31 trillion, with 300 stocks advancing, 374 declining,\nand 289 unchanged.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ihsg-closes-lower-tracking-asian-markets-amid-geopolitical-sentiment-1785754588", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }