IHSG Closes Weaker, Tracking Regional Asian Markets

The Indonesia Stock Exchange (IDX) Composite Index (IHSG) closed lower on Friday afternoon, tracking the weakness in Asian stock markets. The IHSG ended the session down 102.91 points, or 1.72 percent, at 5,896.13. Meanwhile, the LQ45 index of 45 leading stocks fell 4.03 points, or 0.69 percent, to 583.72. “The IHSG closed weaker, impacted by the correction in global stock indices,” said Phintraco Sekuritas Head of Research Ratna Lim in her review in Jakarta on Friday. Ratna explained that negative sentiment stemmed from weakening Asian and European markets, due to selling pressure on technology sector stocks amid growing concerns over rising artificial intelligence (AI) infrastructure costs. “The pressure on technology sector stocks triggered a correction in base metal commodity prices, which drove a correction in related stocks,” said Ratna. For the coming week, Ratna said investors will await a number of domestic economic data releases, including the manufacturing PMI index, trade balance, and inflation. “Thus, the IHSG is expected to have the opportunity to test the 5,700-5,800 level next week,” said Ratna. After opening higher, the IHSG moved into negative territory until the close of the first trading session. In the second session, the IHSG remained in the red ahead of the stock market close. Based on the IDX-IC Sectoral Indices, five sectors strengthened, led by the raw materials sector which rose 2.49 percent, followed by the non-primary consumer goods sector and the transportation & logistics sector which rose 0.47 percent and 0.29 percent respectively. Meanwhile, six sectors declined, with the infrastructure sector falling the deepest by 1.96 percent, followed by the financial sector and the healthcare sector which fell 1.32 percent and 1.07 percent respectively. The stocks that experienced the largest gains were BBRM, TRUS, ARTA, BHAT, and RICY. Meanwhile, the stocks that experienced the largest price declines were FUJI, CLPI, YUPI, GPSO, and UVCR. The frequency of share trading was recorded at 1,520,000 transactions, with 19.11 billion shares traded worth Rp12.72 trillion. A total of 130 stocks rose, 590 stocks fell, and 239 were unchanged. Asian regional stock markets this afternoon included the Nikkei index which weakened 4.09 percent to 71,126.00, the Hang Seng index which weakened 1.76 percent to 22,671.86, the Shanghai index which weakened 2.26 percent to 4,027.26, and the Strait Times index which weakened 0.52 percent to 5,191.73.