IDX Under Heavy Pressure: Sectors with Profit Potential Amid Market Panic

The decline of the Indonesia Composite Index (IHSG) to the 6,599 level is viewed as more than just a standard correction, reflecting a phase of crisis in market confidence. At the close of trading on Monday (18/5/2026), the IHSG corrected by 124.079 points, or 1.85 per cent, to settle at 6,599.240.

Capital market observer and Founder of Republik Investor, Hendra Wardana, stated that the current pressure on the IHSG stems not only from global factors—such as the Iran-US conflict, surging oil prices, a strengthening US dollar, and rising global bond yields—but is also exacerbated by domestic issues that have made investors increasingly cautious about allocating funds to the Indonesian stock market.

Furthermore, foreign investors have recorded a net sell of more than Rp 51 trillion since the beginning of the year, with large-cap stocks continuing to face significant pressure. Wardana noted that both technically and psychologically, the IHSG has entered an oversold area. However, a strong rebound signal has not yet fully formed.

“A short-term rebound is very possible because the index decline has been too deep and valuations are becoming cheap. However, as long as the primary causes of the pressure remain unresolved, the potential for a technical rebound remains vulnerable to being a dead cat bounce,” he explained.

The 10-year US Treasury yield, which has risen to the 4.6 per cent area, has caused foreign funds to tend to return to safe-haven assets rather than entering emerging markets like Indonesia. On the domestic front, pressure remains heavy as investors observe declining market liquidity, large-scale sell-offs in conglomerate stocks, and uncertainty regarding the direction of economic and fiscal policies.