Jakarta, CNBC Indonesia \u2014 The Jakarta Composite Index (IHSG) fell\nfurther in the second trading session on Tuesday (27 October 2026),\ndeclining by as much as 3% shortly before the close. Analysts outlined\nseveral factors behind the move.<\/p>\n
At 3pm Western Indonesian Time (WIB), the IHSG stood at 5,211.28,\ndown 161.81 points, or 3.01%, according to trading data.<\/p>\n
The sharp decline began at around 2pm, when the index dropped from\nthe 5,350 area to below 5,225 within an hour. It touched an intraday low\nof 5,210.29, while a brief rebound to around 5,275\u20135,300 was not strong\nenough to stem the selling pressure.<\/p>\n
Trading volume reached 248.57 million lots, with transactions valued\nat Rp10,083.1 billion, or around Rp10.08 trillion. Refinitiv data showed\nthat infrastructure was the main source of pressure on the IHSG,\nplunging 6%, followed by basic materials, down 3.5%, and technology,\nwhich fell 2.9%.<\/p>\n
A senior market analyst at Mirae Asset Sekuritas Indonesia said the\npressure on the IHSG should be viewed in light of a combination of\nglobal sentiment, foreign fund flows and investors\u2019 rising perception of\nrisk in the domestic capital market. Aggressive selling by foreign\ninvestors can intensify pressure on large-cap shares and drag down the\nindex as a whole.<\/p>\n
Uncertainty surrounding MSCI\u2019s review of Indonesia\u2019s equity-market\nclassification, as well as efforts to improve transparency and\ngovernance in the capital market, could also prompt investors to adopt a\nwait-and-see stance. A weaker rupiah and uncertainty in global markets\nadd to the pressure, particularly when investors are inclined to reduce\ntheir exposure to riskier assets.<\/p>\n
The IHSG\u2019s fall of around 3% may also have been amplified by\ntechnical factors, including profit-taking, a break below support levels\nand stop-loss mechanisms triggering further selling. To determine which\nsentiment was the dominant force in the day\u2019s trading, however, it is\nnecessary to monitor large-cap share movements, the breadth of losses\nacross sectors, transaction data and foreign investors\u2019 net selling.<\/p>\n
\u201cTherefore, the IHSG\u2019s decline does not necessarily reflect a\ndeterioration in the fundamentals of all listed companies; it may also\nindicate a high risk premium and weakening investor confidence in the\ndomestic capital market,\u201d Nafan told CNBC Indonesia.<\/p>\n
Research from Indo Premier Sekuritas (IPOT) also said investors were\nresponding to a rise in the yield on 10-year government bonds to 7.52%,\nits highest level since November 2022. Meanwhile, the rupiah weakened to\nwithin about 0.2% of its record low.<\/p>\n
According to IPOT\u2019s research, pressure on domestic assets was driven\nby rising oil prices, which could increase the energy subsidy burden and\nfiscal pressures. Investor sentiment was also weighed down by concerns\nthat MSCI could downgrade Indonesia\u2019s equity market to Standalone Market\nstatus.<\/p>\n
\u201cAmid these conditions, foreign investors continued to record net\npurchases of government bonds totalling US$509 million during October.\nNegative sentiment nevertheless continued to weigh on the stock market,\nwith the IHSG responding by falling more than 2% in today\u2019s trading,\u201d\nthe firm said in a statement on its official channel.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/jakarta-composite-index-slumps-3-this-afternoon-as-analysts-explain-the-reasons-1793094672", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }