IHSG Closes Higher, Tracking Asian Markets Amid Global Oil Price Correction

The Indonesia Stock Exchange (IDX) composite index (IHSG) closed higher on Thursday, tracking gains across Asian bourses, as sentiment was boosted by a correction in global crude oil prices. The IHSG ended up 115.01 points, or 1.96 per cent, at 5,999.04. Meanwhile, the LQ45 index of top 45 stocks rose 9.58 points, or 1.66 per cent, to 587.75. “Asian markets were dominated by gains because investor sentiment was supported by progress in peace efforts between the United States (US) and Iran, which helped push oil prices back to pre-conflict levels,” said Pilarmas Investindo Sekuritas Associate Director Maximilianus Nico Demus. Nico said the correction in oil prices had eased inflation concerns, thereby reducing pressure on central banks to raise benchmark interest rates further. Domestically, Bank Indonesia (BI) recorded an increase in foreign capital inflows into one-year Bank Indonesia Rupiah Securities (SRBI) and government bonds, with total inflows reaching approximately Rp105 trillion throughout June to date. On the other hand, concerns emerged after Indonesia’s ranking in the World Competitiveness Ranking dropped 21 places. “The IHSG strengthened as buying action returned, with investors hunting for cheap stocks after the market touched its lowest level in two weeks,” Nico said.