IHSG Extends Rally, Opens Higher by 0.41% Approaching 6,400 Level

The Jakarta Composite Index (IHSG) opened higher on Wednesday (22/7/2026), extending a rally that has now lasted for ten consecutive trading days. Based on data from the Indonesia Stock Exchange (BEI) as of around 09.00 WIB, the IHSG rose 0.41% or 26 points to 6,366.01. At the start of trading, the transaction value was recorded at approximately Rp162.17 billion, with a trading volume of 333.51 million shares changing hands across 39,297 transactions. A total of 259 stocks advanced, 41 declined, and 330 remained stagnant. Entering the third trading day of the week, Indonesia’s financial market is in positive territory amid the strengthening momentum of the IHSG and the rupiah. Despite the positive zone, market participants are still monitoring several important domestic and external sentiments, including Bank Indonesia’s interest rate decision to be announced later today, as well as the UK unemployment rate and Japan’s trade balance. The IHSG’s movement is showing fairly solid strengthening momentum, as seen from yesterday’s close where the index surged 1.74% to breach the 6,300 level. This increase also marked the IHSG’s ninth consecutive day of gains. The last time the IHSG rose for nine straight days was in July 2025, when the rally extended to 11 consecutive trading days. Besides the nine-day winning streak, the IHSG has also surged in 14 of the last 15 trading days. Since the beginning of July 2026, the IHSG has only closed lower once, on 8 July 2026. Since that last decline, the IHSG has gained 7.93%, while on a month-to-date basis it has soared 12.35%. The current IHSG rally is also being accompanied by the return of foreign funds. Based on BEI data, foreign investors recorded a net buy of Rp1.99 trillion from 16 July to 21 July 2026. The foreign buying spree began on 16 July with a net buy of Rp1.22 trillion, followed by further inflows of Rp638.05 billion on 17 July, Rp96.72 billion on 20 July, and Rp31.36 billion on 21 July. Daily transaction values have also become more robust, consistently staying above Rp15 trillion over the last three trading days, after previously recording the lowest daily transaction value of 2026 on 10 July. The influx of foreign funds and rising transaction values suggest the current IHSG rally is healthier and expected to sustain its momentum. Meanwhile, Bank Indonesia is set to announce the results of its July Board of Governors Meeting later today, which has been underway since Tuesday. A CNBC Indonesia poll of 14 institutions indicates a majority of respondents expect the BI Rate to be raised again, with eight projecting a 25 basis point increase from 5.75% to 6.00%, while six expect the rate to be held. If the majority projection proves correct, this month’s increase would be BI’s fourth tightening of 2026, following cumulative hikes of 100 basis points since May. Pressure on the rupiah remains a primary reason why most economists anticipate a further rate increase.