The Indonesia Stock Exchange (BEI) composite index (IHSG) closed\nhigher on Monday afternoon as investors responded positively to S&P\nGlobal Ratings maintaining Indonesia\u2019s sovereign debt rating at \u2018BBB\u2019\nwith a stable outlook. The IHSG closed up 113.48 points, or 1.92\npercent, at 6,037.84. Meanwhile, the LQ45 index of 45 leading stocks\nrose 13.12 points, or 2.23 percent, to 602.37.<\/p>\n
Phintraco Sekuritas Head of Research Ratna Lim stated that positive\nsentiment stemmed from S&P Global Ratings affirming Indonesia\u2019s\nlong-term credit rating at \u2018BBB\u2019 and short-term rating at \u2018A-2\u2019, with\nthe long-term outlook maintained at \u2018Stable\u2019. The market responded\npositively, having previously feared a potential downgrade to\nIndonesia\u2019s rating or outlook.<\/p>\n
Domestically, S&P Global Ratings assessed the weakening of\nIndonesia\u2019s fiscal and external positions as temporary, with potential\nfor improvement alongside rising commodity prices and government efforts\nto boost state revenue. The stable outlook reflects expectations that\nstate revenue will continue to recover this year and export earnings\nwill increase as commodity prices strengthen. S&P expects the\ngovernment to maintain the state budget deficit limit of three percent\nof gross domestic product (GDP) as the main fiscal policy anchor.<\/p>\n
The global rating agency also projected Indonesia\u2019s economy could\nstill grow 5.1 percent in 2026, before recording average growth of 4.9\npercent per year throughout 2026\u20132029. This outlook is supported by\nfiscal spending, downstreaming programmes, and improved management of\nthe natural resources sector.<\/p>\n
From abroad, market sentiment was influenced by rising tensions in\nthe Middle East, with higher oil prices keeping inflationary pressures\nand interest rate hike expectations in focus. The tensions follow new\nUnited States strikes against Iran, with uncertainty over the status of\nthe Strait of Hormuz keeping markets on edge. Meanwhile, market\nparticipants await US inflation data this week for further clues on the\nFederal Reserve\u2019s monetary policy outlook. Markets currently expect the\nFed to raise interest rates once before the end of the year. Minutes\nfrom the Fed\u2019s June 2026 meeting showed some policymakers saw grounds\nfor a rate hike, although they ultimately supported keeping policy\nunchanged. Fed Chair Kevin Warsh is scheduled to appear before Congress\nfor the first time on Tuesday and Wednesday this week.<\/p>\n
The IHSG opened higher and remained in positive territory until the\nclose of the first trading session. In the second session, the IHSG\nstayed in the green until the close of trading. Based on the IDX-IC\nsectoral indices, nine sectors strengthened, led by the energy sector\nwhich rose 2.50 percent, followed by the basic materials and industrial\nsectors which gained 2.41 percent and 1.79 percent respectively. Two\nsectors weakened, with healthcare falling the most by 0.40 percent,\nfollowed by the consumer non-cyclicals sector which declined 0.15\npercent.<\/p>\n
Stocks recording the largest price gains included BKDP, LAND, VKTR,\nPRDL, and ATAP. Meanwhile, stocks experiencing the largest price\ndeclines were BAPA, JELI, RBMS, RANS, and GRPM. Trading frequency was\nrecorded at 2,676,000 transactions, with a total of 25.10 billion shares\ntraded worth Rp12.14 trillion. A total of 392 stocks advanced, 268\ndeclined, and 305 were unchanged.<\/p>\n
Regional Asian stock markets in the afternoon saw the Nikkei index\nweaken 1.76 percent to 67,350.00, the Shanghai index fall 2.06 percent\nto 3,913.79, the Hang Seng index strengthen 0.16 percent to 24,213.72,\nand the Strait Times index edge up 0.02 percent to 5,470.54.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ihsg-strengthens-on-positive-response-to-s-p-global-maintaining-indonesias-rating-1783943701", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }