IHSG Closes Lower Amid Regional Market Weakness

The Indonesia Stock Exchange (IDX) Composite index (IHSG) closed lower on Thursday, mirroring the weakness seen across regional Asian markets. The IHSG fell 7.43 points, or 0.12 percent, to 6,343.71, while the LQ45 index of top stocks dropped 3.13 points, or 0.49 percent, to 630.86. Regional bourses moved lower as market participants continued to monitor developments in the Middle East. Iran announced an agreement with Oman regarding a shipping route through the Strait of Hormuz, raising hopes that more energy exports could flow through the strategic waterway. Iranian officials stated a joint declaration was being finalised and the route was expected to remain operational for two to four months, though they stressed the arrangement did not fully reopen the strait. Market players also weighed the potential for uncertainty in efforts to reopen the Strait of Hormuz and possible disruptions following an attack in the Red Sea, where Yemen’s Houthi group claimed to have struck a Saudi oil tanker in northern waters. Attention also turned to the US Federal Reserve, with markets scaling back expectations for interest rate hikes this year to just one by year-end, down from two the previous week. This followed data showing the US economy added only 44,000 private sector jobs in July 2026, the weakest growth since January 2026 and well below the forecast of 70,000. Separately, Fed Governor Lisa Cook reiterated her readiness to raise rates if inflation does not subside, while Minneapolis Fed President Neel Kashkari said it was an appropriate time to begin gradual rate increases. Domestically, Indonesia’s stronger-than-expected economic growth of 5.29 percent year-on-year in the second quarter of 2026 failed to boost the IHSG. Market participants remained selective, with the index not yet fully supported by large-cap stocks or foreign inflows, but rather by speculative shares. The IHSG opened higher and stayed in positive territory until the end of the first trading session, before slipping into the red during the second session. By sector, four sectors advanced, led by energy which rose 1.57 percent, followed by industrials and transportation and logistics. Seven sectors declined, with healthcare falling the most at 0.55 percent, followed by property and technology. Top gainers included TMPO, PDES, FAST, IATA, and JGLE, while TALF, BACH, ROCK, ISAP, and GPSO led the decliners. Trading volume reached 53.47 billion shares with a total transaction value of Rp18.15 trillion, across 2.66 million trades. Advancing stocks numbered 278, decliners 354, and 331 stocks were unchanged. Across Asia, the Nikkei fell 0.89 percent, the Shanghai Composite rose 0.57 percent, the Hang Seng dropped 1.49 percent, the Kospi slumped 4.58 percent, and the Kuala Lumpur Composite Index eased 0.63 percent.