High Volatility and Thin Market, IHSG Rises 0.84% in First Session

The Jakarta Composite Index (IHSG) closed the first trading session on Wednesday (1/6/2026) with a gain of 47.39 points, or 0.84%, to 5,690.58. A total of 376 stocks advanced, 270 declined, and 313 remained unchanged. Trading on the first day of the month was relatively quiet, with transaction values reaching Rp 5.86 trillion on a volume of 9.89 billion shares across 876,100 trades. Volatility remained high; after opening with a 1% gain, the IHSG briefly dipped into the red before surging to a daily high of 5,728.22. According to Refinitiv, three sectors dominated the IHSG’s strengthening: raw materials (3.52%), utilities (2.17%), and energy (1.31%). BBCA, which rebounded from the 5,500 level, was the main driver of the index, contributing 11.71 points after having fallen 11.26% over the previous two trading days. Prajogo Pangestu’s BRPT also significantly supported the index, rising 10.12% and contributing 7.31 points. TLKM, BREN, AMMN, and MBMA were also among the top movers in the session. The Financial Services Authority (OJK) has previously assessed that the condition of the Indonesian stock market needs improvement, as the IHSG remains stuck in negative territory and has been unable to recover like other regional bourses. OJK’s Chief Executive of Capital Market, Derivatives Finance, and Carbon Exchange Supervision, Hasan Fawzi, stated that there is something unusual behind the sustained weakening of the Indonesian capital market. He remarked that if the market is continuously in the red, there must be something wrong that needs to be addressed. Year-to-date, the IHSG has fallen 34.95%, and it declined 7.9% on a monthly basis in June. Entering the first day of the second half of 2026, Indonesia’s financial markets are expected to continue facing numerous challenges from both domestic and global factors. Globally, Iran on Tuesday reaffirmed it would not meet with a senior US envoy, leaving the prospects for long-term peace between the two nations uncertain. Tehran stated its current focus is on finalising the details of a ceasefire agreed two weeks ago before addressing more complex issues, including its nuclear programme. Iran also asserted it will continue to control traffic in the Strait of Hormuz alongside Oman and plans to impose shipping tariffs in mid-August after a 60-day negotiation period ends. Despite ongoing tensions, oil prices have continued to weaken, though the United Nations has warned that the impact of war could still drive up food and energy prices in vulnerable countries. The tentative US-Iran agreement also includes efforts to end the Israel-Hezbollah conflict, but its implementation remains doubtful. On Wednesday, S&P Global is scheduled to release its China Manufacturing PMI data. For reference, China’s manufacturing activity moderated in May 2026, with the index easing to 51.8 from a five-year high of 52.2 in April, though it remained above the market forecast of 51.4. Growth in new orders and output moderated but stayed solid, largely supported by domestic demand. Domestically, the Central Statistics Agency (BPS) announced that Indonesia’s trade balance recorded a deficit of US$1.61 billion in May 2026, the first deficit in six years. The shortfall was driven by imports of US$24.81 billion exceeding exports of US$23.20 billion, ending a 72-month run of consecutive surpluses since May 2020. BPS Deputy for Distribution and Services Statistics, Ateng Hartono, explained that the deficit was primarily caused by oil and gas commodities, which posted a deficit of US$3.76 billion, driven by refined oil products and crude oil. BPS data showed imports rose 22.16% compared to May 2025, with oil and gas imports surging 70.78% year-on-year to US$4.51 billion, while non-oil and gas imports increased 14.97% to US$20.30 billion.