IHSG closes lower amid global energy inflation concerns

Indonesia’s Composite Index (IHSG) at the Indonesia Stock Exchange (IDX) closed lower on Monday afternoon amid investor concerns over potential global energy inflation resulting from surging crude oil prices.

The IHSG fell 248.32 points or 3.27 per cent to 7,337.37. The LQ45 index of blue-chip stocks declined 25.47 points or 3.28 per cent to 750.57.

“The IHSG weakened amid geopolitical sentiment and potential inflation,” said Rarna Lim, head of research at Phintraco Securities, in his analysis in Jakarta on Monday.

Owing to conflict in the Middle East, the closure of the Strait of Hormuz has prompted Middle Eastern oil producers to reduce production due to lack of storage capacity, as they cannot ship products to customers.

Correspondingly, crude oil prices surged sharply. WTI crude rose 11.86 per cent to $101.68 per barrel and Brent crude climbed 12.77 per cent to $104.53 per barrel in trading at 5:12 p.m. Western Indonesian Time, raising concerns over potential inflation and global economic slowdown.

Meanwhile, finance ministers from the G7 are scheduled to discuss the possibility of jointly releasing emergency oil reserves.

Strategic reserves have previously been tapped five times, including during Russia’s invasion of Ukraine, supply disruptions in Libya, Hurricane Katrina, and the first Gulf War.

From Asia, China’s inflation rose 1.3 per cent year-on-year in February 2026 from 0.2 per cent year-on-year in January 2026, marking the highest increase since January 2023 and exceeding expectations of 0.8 per cent.

This increase was primarily driven by Chinese New Year celebrations in mid-February 2026. Investors are now awaiting China’s import-export data for January-February 2026.

Domestically, the Consumer Confidence Index (IKK) declined to 125.2 in February 2026 from 127 in January 2026, reflecting weakening economic prospects, expectations of income decline over the next six months, and expectations of reduced job availability over the next six months.

Opening lower, the IHSG remained in negative territory throughout the first trading session. In the second session, it stayed in the red until market close.

Based on the IDX Sector Index, all eleven sectors declined, with the non-primary consumer goods sector experiencing the steepest fall of 5.00 per cent, followed by the transport and logistics sector and raw materials sector, each falling 4.93 per cent and 4.42 per cent respectively.

Stocks with the largest gains were RANC, SHID, OILS, BSIM and MKAP. Stocks with the largest losses were BULL, PGAS, GTSI, TRUE and BKSL.

Trading volume totalled 2,474,203 transactions with 46.80 billion shares traded valued at Rp23.88 trillion. A total of 68 stocks rose, 708 stocks fell, and 41 remained unchanged.

Regional Asian stock markets this afternoon included the Nikkei index declining 2,892.10 points or 5.20 per cent to 56,728.69, the Shanghai index falling 27.58 points or 0.67 per cent to 4,096.60, the Hang Seng index dropping 348.82 points or 1.35 per cent to 25,408.46, and the Straits Times index falling 91.64 points or 1.89 per cent to 4,756.60.