IHSG Closes Lower, Weighed Down by S&P Dow Jones Sentiment

The Indonesia Stock Exchange (IDX) Composite index (IHSG) closed lower on Wednesday, weighed down by sentiment following an announcement from global index provider S&P Dow Jones. The IHSG closed down 113.12 points, or 1.89 percent, to 5,873.37. Meanwhile, the LQ45 index of top 45 stocks fell 12.04 points, or 2.02 percent, to 582.88. “The IHSG weakened, burdened by sentiment from the S&P Dow Jones release,” said Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, in his analysis in Jakarta on Wednesday. From the domestic side, Nico explained that the financial market’s burden increased after S&P Dow Jones Indices placed Indonesia on a watchlist of countries potentially facing market reclassification in 2027. The global index provider stated it would continue to monitor developments regarding share ownership transparency in Indonesia, referring to new guidelines issued by the IDX. “This potential status downgrade is related to the transparency of the domestic capital market, similar to what MSCI did previously. This condition certainly puts pressure on the domestic financial market,” Nico said. From the external side, the majority of Asian bourses weakened, weighed down by geopolitical risks amid rising tensions between the United States and Iran, with recent airstrikes against Iran driving the latest escalation.