IHSG closes weaker on global and domestic sentiment

Opening the week, the movement of the Indonesia Stock Exchange’s Composite Index (IHSG) was influenced by both external and internal sentiment.

Jakarta (ANTARA) — The Indonesia Stock Exchange’s Composite Index (IHSG) closed weaker on Monday afternoon, influenced by sentiment at both the global and domestic levels.

The IHSG fell 16.81 points, or 0.25 per cent, to 6,619.67. Meanwhile, the group of 45 blue-chip stocks, the LQ45 index, dropped 1.17 points, or 0.18 per cent, to 656.42.

“Opening the week, the movement of the IHSG was influenced by external and internal sentiment,” said Maximilianus Nico Demus, also known as Nico, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, in his review in Jakarta on Monday.

From abroad, Nico said Asian regional exchanges tended to move in a mixed fashion as market participants remained cautious amid escalating pressure between the United States and Iran, with both sides exchanging attacks.

Iran has targeted oil tankers and several vessels linked to the United States, and plans to designate a restricted maritime zone outside the Strait of Hormuz in the coming days.

This follows a US attack on an Iranian oil tanker, which Washington said was carried out in retaliation for Tehran’s missile attack on a US Navy warship.

“The exchange of attacks on ships over the weekend has triggered fears of renewed inflation,” Nico said.

In addition, market participants responded to stronger-than-expected US employment data, with the US Change in Nonfarm Payrolls rising from a previous 21,000 to 162,000, boosting expectations of a Federal Reserve rate hike in September 2026.

The data signals a recovery in the labour market following a period of weakness, leading the market to speculate on the possibility of the Fed raising its benchmark interest rate this month.

On the other hand, market participants also responded to the rise in technology stocks, driven by optimism that OpenAI’s new model could spur stronger demand for memory chips.

The technology rally reflects the strong gains in US technology stocks on Friday (04/09), with enthusiasm for OpenAI’s latest AI model lifting global sentiment towards chipmakers and AI-related companies, which should support producers’ performance through market demand.

On the domestic front, Nico said market participants were worried about natural disasters, including the eruption of Mount Anak Krakatau, which is seen as increasing the risk of public health disruptions as well as transport and logistics disturbances.

Meanwhile, Bank Indonesia reported that Indonesia’s foreign exchange reserves stood at US$146.5 billion in August 2026, up from US$145.3 billion at the end of July 2026.

That position is equivalent to 5.4 months of imports, or 5.3 months of imports and payments of the government’s external debt, and is well above the international adequacy standard of around three months of imports. It is also capable of supporting the resilience of the external sector and maintaining macroeconomic and financial system stability.

Having opened higher, the IHSG moved into negative territory by the close of the first trading session. In the second session, the IHSG remained in the red until the close of trading.

Based on the IDX-IC Sectoral Index, seven sectors advanced, led by the industrial sector, which rose 1.30 per cent, followed by the energy and healthcare sectors, which gained 1.06 per cent and 0.77 per cent respectively.

Meanwhile, four sectors weakened, with the technology sector falling the deepest at 0.73 per cent, followed by the financial and basic materials sectors, which declined 0.70 per cent and 0.60 per cent respectively.

The stocks with the largest price gains were MEDS, NZIA, HALO, SOHO, and SHID, while those with the largest price declines were HOPE, JAYA, AKSI, LUCY, and LOPI.

Trading frequency was recorded at 2,119,000 transactions, with 35.26 billion shares traded, worth Rp13.62 trillion. A total of 300 stocks rose, 348 declined, and 315 were unchanged.

Regional Asian stock exchanges this afternoon saw the Nikkei index strengthen 2.02 per cent to 66,334.00, the Shanghai index gain 0.07 per cent to 3,932.70, the Hang Seng index weaken 0.93 per cent to 25,413.12, the Kospi index surge 4.61 per cent to 6,995.39, and the Straits Times index slip 0.16 per cent to 5,793.36.