IHSG Closes Lower Amid 'Wait and See' Stance on The Fed's Rate Direction
The Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (BEI) closed lower on Monday afternoon, as market participants adopted a wait-and-see approach regarding the direction of the US Federal Reserve’s benchmark interest rate policy. The IHSG ended down 10.65 points, or 0.17 percent, at 6,185.78. Meanwhile, the LQ45 index of top stocks fell 2.23 points, or 0.36 percent, to 612.56.
Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, Maximilianus Nico Demus, stated that sentiment was buoyed by easing geopolitical tensions after the United States halted strikes against Iran over the weekend, and Iran indicated it had stopped retaliatory attacks against US allies in the region. Nico noted that the de-escalation of the US-Iran conflict led to a decline in global crude oil prices, alleviating concerns over energy supply and inflation.
This week, market participants will scrutinise the outcome of the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting on 28-29 July 2026, which will determine the direction of its benchmark interest rate. Investors are also monitoring policy directions from the Bank of Japan and the Bank of England, US PCE inflation data, US second-quarter 2026 economic growth data, US durable goods orders, China’s Politburo meeting, and China’s manufacturing PMI.
From China, the National Bureau of Statistics released industrial profit data showing growth of 18.7 percent, albeit a slight slowdown from the previous month’s 18.8 percent. Market players are also awaiting the Politburo meeting at the end of the week, where President Xi Jinping and other top policymakers are expected to outline priorities for the second half of the year.
Domestically, market participants are adopting a wait-and-see stance regarding the definitive Governor of Bank Indonesia following the resignation of Perry Warjiyo and the appointment of Senior Deputy Governor Destry Damayanti as acting Governor. While the transition aims to maintain market confidence in the continuity of BI’s role in dampening domestic financial market volatility, Nico noted that market players are concerned it could lead to uncertainty over monetary policy direction, BI’s independence, and rupiah stability.
The IHSG opened lower and remained in negative territory throughout the first trading session, continuing its decline into the close. Based on the IDX-IC sectoral indices, two sectors strengthened, led by the industrial sector which rose 0.72 percent, followed by the technology sector which gained 0.33 percent. Eight sectors weakened, with infrastructure falling the most at 1.29 percent, followed by property and energy, which dropped 0.75 percent and 0.66 percent respectively.
Stocks that recorded the largest gains included DMMX, BAJA, ZONE, TAMA, and MCAS, while the biggest losers were KDTN, ARKO, MLPT, OMRE, and OILS. Trading frequency reached 1.79 million transactions, with 26.00 billion shares traded worth Rp12.12 trillion. A total of 318 stocks advanced, 360 declined, and 287 remained unchanged. In contrast, regional Asian bourses strengthened, with the Nikkei up 0.66 percent, Shanghai gaining 1.15 percent, Hang Seng rising 0.98 percent, Kospi advancing 0.97 percent, and the Straits Times Index increasing 0.55 percent.