IHSG Closes Slightly Higher Amid Domestic and Global Sentiment

The Indonesia Stock Exchange (IDX) Composite Index (IHSG) closed slightly higher on Friday, gaining 4.80 points, or 0.08 percent, to 6,177.14. The LQ45 index of top stocks, however, fell 7.52 points, or 1.22 percent, to 609.40.

Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, Maximilianus Nico Demus, noted that the domestic market’s gains were limited by a new warning from MSCI. The global index provider highlighted weak visibility in share ownership and concerns over coordinated trading. MSCI’s review confirmed a downgrade in the Information Flow aspect, stressing that the main issue for Indonesia’s capital market is not liquidity or market size, but governance and transparency.

From the global front, market movements were influenced by the tentative peace agreement between the United States and Iran, which eased geopolitical tensions and lowered global oil prices. However, hawkish signals from the Federal Reserve regarding the potential for further interest rate hikes also weighed on sentiment.

Trading on the IDX saw 353 stocks gain, 358 decline, and 248 remain unchanged. Total trading volume reached 30.76 billion shares with a transaction value of IDR 26.49 trillion across 1.71 million trades. The healthcare sector led gains, rising 2.67 percent, followed by infrastructure and consumer non-cyclicals. The basic materials sector fell the deepest, losing 1.13 percent.

In regional markets, Japan’s Nikkei index strengthened 0.52 percent, while the Strait Times index in Singapore weakened 0.39 percent. Markets in Shanghai and Hong Kong were closed for the Dragon Boat Festival holiday.