Breaking News! Party Continues, IHSG Rises 4%

Jakarta, CNBC Indonesia — The Jakarta Composite Index (IHSG) recorded a sharp rise in today’s trading, strengthening by more than 4% and breaking through the psychological level of 6,200. As of 10:14 WIB, the IHSG stood at 6,249.90, up 242.24 points or 4.03% compared to the previous close. This strengthening continues the positive trend in the domestic stock market over recent days, amidst increasing market participant optimism regarding national economic prospects and positive sentiment from global financial markets. Trading data showed the IHSG touched a daily high of 6,254.58, while the lowest level was at 6,118.08. The opening position was recorded at 6,118.73. Transaction activity was also busy, with a transaction value reaching IDR 8.99 trillion, a trading volume of 15.27 billion shares, and a transaction frequency of 1.07 million times. The IHSG rally was supported by the dominance of advancing stocks, with 654 stocks rising, while only 87 stocks fell and 218 stocks remained stagnant. With market capitalisation returning to IDR 10,916 trillion, this IHSG strengthening is one of the largest daily increases of the year and reinforces the return of investor interest to the Indonesian stock market. Financial market movements today and over the coming week are expected to still be overshadowed by increased global uncertainty due to the conflict in the Middle East. After world oil prices soared and market volatility increased in recent weeks, investors are now awaiting a number of important economic data points that could provide clues regarding the direction of global economic growth, interest rate prospects, and exchange rate stability. The main market focus will be on the interest rate meetings of Bank Indonesia and The Federal Reserve (The Fed), US consumption data, and a series of economic indicators from China which serve as a barometer for global commodity demand. For Indonesia, the combination of these data points will influence the movement of the rupiah, the IHSG, the bond market, and the prospects for commodity sectors such as coal, nickel, and crude palm oil (CPO). Asian markets welcomed news of a peace agreement between the United States (US) and Iran. World oil prices immediately plummeted after US President Donald Trump announced that the two countries had reached an agreement to reopen the Strait of Hormuz. In the Asian region, investors responded to this geopolitical development with enthusiasm. South Korea’s Kospi index surged 5.1%, leading gains in the region. Japan’s Nikkei 225 index rose 3.6%, while the Topix index strengthened 2.6%. In Australia, the S&P/ASX 200 index also recorded a 1.3% increase.