Breakout 6,400! Here's Why the IHSG Surged 1%
Jakarta, CNBC Indonesia — The Indonesia Stock Exchange Composite Index (IHSG) continued its rally in trading on Thursday (23/7/2026). In the morning session, the index broke through the psychological 6,400 level, an area that had proven difficult to breach in recent sessions.
According to data from the Indonesia Stock Exchange (IDX), as of 09:54 WIB, the IHSG rose 75.28 points, or 1.19%, to 6,409.76. Throughout the morning session, the index moved within a range of 6,338.24 to 6,412.62, recording an intraday high above 6,400.
Trading activity also picked up. Transaction value reached Rp5.36 trillion, with 15.65 billion shares traded across some 807,000 transactions. A total of 411 shares rose, 172 declined, and 382 were unchanged, reflecting buying dominance across nearly all sectors.
The IDX’s market capitalisation also increased to Rp11,208 trillion, up by around Rp112 trillion from the previous close of Rp11,096 trillion.
The IHSG’s gain was underpinned by a rally in commodity, technology and banking stocks. By sector, basic materials led the advance with a 1.15% rise, followed by technology at 1.11%, energy at 0.82% and utilities at 0.80%.
Interestingly, the financial sector was the only sector in the red, slipping a marginal 0.02%, indicating the index rally was driven more by rotation into non-financial sectors.
Even so, PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) was the largest contributor to the IHSG’s gain, adding 5.84 points.
It was followed by PT Capital Financial Indonesia Tbk (CASA) with 5.48 points, PT Bumi Resources Minerals Tbk (BRMS) with 4.46 points, PT Bumi Resources Tbk (BUMI) with 4.41 points, PT Multipolar Technology Tbk (MLPT) with 3.53 points, PT Amman Mineral Internasional Tbk (AMMN) with 3.37 points, and PT Bank Mandiri (Persero) Tbk (BMRI) with 3.26 points.
Meanwhile, downward pressure on the index came from PT Bank Central Asia Tbk (BBCA), which shaved 4.41 points off the IHSG. Other stocks weighing on the index included PT Astra International Tbk (ASII), PT Telkom Indonesia (Persero) Tbk (TLKM), PT MNC Digital Entertainment Tbk (MSIN), and PT Bank Negara Indonesia (Persero) Tbk (BBNI).
From a technical perspective, the IHSG’s success in breaking through the 6,400 level is a positive signal for the continuation of the short-term trend. After a slight correction in Wednesday’s session, which ended a nine-day consecutive rally, the index rebounded and printed a higher high.
On the daily chart, the IHSG remains well above the 9-day weighted moving average (WMA) at around 6,257, confirming that the short-term uptrend remains intact. The 6,400 area, which previously served as resistance, is now a key level to hold.
If the index can stay above that level through to the close, the opportunity to extend gains towards the 6,450–6,500 range will open up further.
Conversely, if the index fails to hold the level, short-term profit-taking is not out of the question, given the index has risen more than 23% since touching its low in early June.
In terms of sentiment, the IHSG’s rise came after Bank Indonesia kept its benchmark BI Rate at 5.25%, in line with market expectations. Although foreign investors still recorded net selling of Rp920.3 billion in the previous session, optimism among domestic investors and rotation into commodity and technology stocks helped sustain the momentum of the Indonesian stock market’s rally.