IHSG closes higher, buoyed by gains across all sectors
The Indonesia Stock Exchange (BEI) composite index (IHSG) closed higher on Thursday, lifted by gains across all sectors. The IHSG ended up 66.24 points, or 1.10 percent, at 6,108.21, while the LQ45 index of top 45 stocks rose 8.68 points, or 1.45 percent, to 608.58.
“The index’s rise is potentially limited by the effect of volatile world oil prices, which have now breached 80 US dollars per barrel due to renewed tensions between the United States and Iran,” said Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, in his analysis in Jakarta on Thursday.
Domestically, Nico assessed that the IHSG’s strengthening was supported by the government preparing fiscal and market measures to control inflation, particularly in volatile food commodities and rising industrial costs. Furthermore, the decision by international rating agency S&P Global Ratings to maintain Indonesia’s credit rating continued to provide positive sentiment for domestic assets. “On the other hand, the rise in world oil prices will certainly burden the state budget again, raising concerns it could throw the fiscal deficit off course,” Nico said.
From the global front, Nico explained that market participants continue to monitor the escalation of attacks in the Middle East after the US launched additional strikes against Iranian targets. The intensifying conflict has driven oil prices sharply higher this week, triggering fresh concerns about inflation and the interest rate outlook. However, US President Donald Trump stated that Tehran has indicated a willingness to resume negotiations.
Elsewhere, released economic data showed that China’s economy grew at its slowest pace. The data indicated that China’s GDP grew at the slowest rate since the fourth quarter of 2022 and fell below the government’s 2026 growth target range of 4.5 to 5 percent.
After opening higher, the IHSG remained comfortably in positive territory until the close of the first trading session. It continued to stay in the green throughout the second session until the market closed.
Based on the IDX-IC sectoral indices, all eleven sectors strengthened, led by the technology sector which rose 1.94 percent, followed by the basic materials and property sectors which gained 1.57 percent and 1.31 percent, respectively.
Top gainers among stocks included KBLV, CTTH, RONY, AGAR, and MLPT. Meanwhile, stocks that experienced the largest declines were BAPA, DATA, ATAP, LUCY, and GDST.
Trading frequency was recorded at 2,274,000 transactions, with a total volume of 26.59 billion shares traded worth Rp13.33 trillion. A total of 385 stocks advanced, 254 declined, and 326 remained unchanged.
In regional Asian bourses on Thursday afternoon, the Nikkei index fell 2.63 percent to 66,942.00, the Shanghai index strengthened 1.85 percent to 3,882.41, the Hang Seng index rose 1.33 percent to 25,008.60, and the Strait Times index weakened 0.37 percent to 5,539.38.