IHSG Drops 0.33% to 6,441 Ahead of Weekend

Ahead of the weekend, the Indonesia Composite Index (IHSG) settled in the red zone, weakening by 21.27 points or 0.33% to the level of 6,441.

The movement of the IHSG throughout the trading session tended to remain in the red. The index initially opened at 6,512.57 and moved fluctuatively before continuing its decline. During today’s trading, the IHSG recorded a high of 6,521.02, while the lowest level reached 6,419.50.

Based on data from the Indonesia Stock Exchange, at the close of the second session this afternoon, only 212 stocks strengthened, 464 stocks weakened, and 287 stocks remained stagnant, with a volume of 31.72 billion shares valued at Rp 19.24 trillion.

Quoting Stockbit, in terms of transaction activity, the total transaction volume across all markets reached 325.81 million lots, with a transaction value of Rp 19.25 trillion and a frequency of approximately 1.92 million times.

When detailed by transaction segment, trading in the regular market dominated market activity. The transaction volume in the regular market reached 291.76 million lots, with a transaction value of Rp 17.3 trillion and a frequency of 1.92 million times. Meanwhile, transactions in the negotiated market were recorded at 34.05 million lots, with a value of Rp 1.95 trillion and a frequency of 459 times. Transactions in the cash market were relatively small, at 640 lots, with a value of Rp 18.96 million and a frequency of 2 times.

According to Refinitiv data, the largest sectors weighing down the IHSG were consumer staples, which fell 1.27%, followed by property, which fell 1.2%, and the healthcare sector, which declined by 1.18%.

Stocks that acted as a drag on the IHSG included PT Amman Minerals Tbk (AMMN), PT Bank Mandiri (Persero) Tbk (BMRI), PT Dian Swastika Sentosa Tbk (DSSA), PT Mora Telematika Indonesia Tbk (MORA), and PT Bank Central Asia Tbk (BBCA).

Conversely, stocks supporting the IHSG’s correction included PT Bayan Resources Tbk (BYAN), PT DCI Indonesia Tbk (DCII), PT Barito Renewables Energy Tbk (BREN), PT Merdeka Battery Materials Tbk (MBMA), and PT Aneka Tambang (Persero) Tbk (ANTM).

Earlier this morning, the IHSG opened in the green, strengthening by 0.76% to the level of 6,511.5, supported by BYAN shares, which surged 19.96% to Rp 13,835, along with several companies affiliated with businessman Haji Isam.

Several external indicators have begun to provide room for risky assets, after oil prices and US Treasury yields fell, while Wall Street managed to rebound during Thursday’s trading. Wall Street closed higher, with the Dow Jones rising 0.61%, the S&P 500 gaining 1.14%, and the Nasdaq Composite jumping 1.69%. This strengthening occurred alongside the decline in Treasury yields and oil prices, although markets are still closely monitoring the direction of Fed policy and geopolitical developments in the Middle East.

Brent crude prices also corrected by approximately 1% to US$104.82 per barrel, while WTI oil fell to US$101.91 per barrel. Nevertheless, oil prices remain above US$100 per barrel as the risk of supply disruptions from the Middle East conflict remains high.

The market continues to monitor the escalation of the conflict between Saudi Arabia and the Iran-backed Houthi group. Both sides engaged in attacks again on Thursday, increasing concerns regarding energy trade routes in the region. Ship traffic through the Strait of Hormuz also dropped sharply, with only three commercial ships recorded passing through on Wednesday, compared to a 10-day average of 17 ships.

On the other hand, US jobless claims fell to 196,000, lower than the expected 208,000, indicating that the US labour market remains relatively strong. This condition is a point of attention for investors as it may affect expectations regarding the direction of the Fed’s monetary policy.

From Europe, the Bank of England (BoE) maintained interest rates at 3.75%, even though UK inflation rose to 3.1% in August. The BoE also highlighted the risk of rising energy prices due to the Middle East conflict.

Meanwhile, market attention in Asia is focused on Japan. August inflation data will be released this morning before the Bank of Japan (BoJ) announces its interest rate decision. The market expects the BoJ to raise interest rates by 25 basis points to 1.25%. This decision has the potential to influence the movement of the yen, Japanese bonds, and the flow of Japanese investor funds in the global market.