Breakout 6,400! Here's Why the IHSG Surged 1%

The Jakarta Composite Index (IHSG) continued its rally on Thursday (23/7/2026), successfully breaking through the psychological level of 6,400 during the morning session after struggling to breach it in recent trading days. According to data from the Indonesia Stock Exchange (BEI), as of 09:54 WIB, the IHSG had strengthened by 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 a new intraday high above 6,400. Trading activity also increased, with a transaction value reaching Rp5.36 trillion and a volume of 15.65 billion shares traded across 807,000 transactions. A total of 411 stocks advanced, 172 declined, and 382 remained unchanged, reflecting buying dominance across nearly all sectors. The market capitalisation of the Indonesia Stock Exchange rose to Rp11,208 trillion, an increase of approximately Rp112 trillion from the previous closing position of Rp11,096 trillion. The IHSG’s strengthening was supported by rallies in commodity, technology, and banking stocks. By sector, basic materials led the gains with a 1.15% increase, followed by technology at 1.11%, energy at 0.84%, and utilities at 0.80%. Interestingly, the financial sector was the only one in negative territory, edging down 0.02%, indicating that the index rally was largely driven by a rotation into non-financial sectors. However, PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) was the largest contributor to the IHSG’s rise, adding 5.84 points. Other significant contributors included 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. Conversely, 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 successful breach of the 6,400 level is a positive signal for the continuation of the short-term trend. After a slight correction on Wednesday that ended a nine-day winning streak, the index rebounded and again recorded a higher high. On the daily chart, the IHSG remains well above the 9-day weighted moving average (WMA) around 6,257, confirming the short-term uptrend. The 6,400 level, previously a resistance point, is now a crucial level to maintain. If the index can hold above this level until the close, the opportunity to continue strengthening towards the 6,450-6,500 range will be increasingly open. Conversely, failure to maintain this level could trigger short-term profit-taking after the index surged more than 23% from its low point in early June. On the sentiment front, the IHSG’s rise came after Bank Indonesia held its benchmark interest rate at 5.25%, in line with market expectations. Although foreign investors recorded a net sell of Rp920.3 billion in the previous trading session, domestic investor optimism and a rotation into commodity and technology stocks managed to sustain the market’s upward momentum.