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

The Indonesia Composite Index (JCI) of the Indonesia Stock Exchange (IDX) closed weaker on Wednesday afternoon, burdened by sentiment following an announcement from global index provider S&P Dow Jones.

The JCI fell by 113.12 points, or 1.89 per cent, to the 5,873.37 level. Meanwhile, the LQ45 index, comprising 45 blue-chip stocks, dropped by 12.04 points, or 2.02 per cent, to 582.88.

“The JCI weakened, weighed down by the sentiment of the S&P Dow Jones release,” stated Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, in his analysis in Jakarta on Wednesday.

Regarding domestic factors, Nico explained that the burden on the financial market increased after S&P Dow Jones Indices announced the inclusion of Indonesia on its watchlist of countries potentially undergoing market reclassification in 2027.

The global index provider stated it will continue to monitor developments regarding share ownership transparency in Indonesia, referring to the new guidelines issued by the IDX.

“This downgrade in status relates to the transparency conditions of the domestic capital market, similar to what was previously done by MSCI. This situation naturally exerts pressure on the domestic financial market,” said Nico.

From an international perspective, most Asian markets weakened, burdened by geopolitical risks amidst rising tensions between the United States and Iran, where recent airstrikes against Iran have driven further escalation.