IHSG Opens Lower, Tracking Wall Street, as Asian Markets Rebound Mixed

The Jakarta Composite Index (IHSG) opened down 10 points, or 0.18 percent, at 5,873 on Thursday’s trading session. Retail Research Analyst at BNI Sekuritas, Muhammad Lutfi Permana, predicted the IHSG is likely to extend its decline today. “Today the IHSG has the potential to continue its decline,” Lutfi stated in his daily research note on Thursday. He noted that Asian markets were mixed in the previous day’s trading. In Japan, the Nikkei 225 fell 0.88 percent and the Topix weakened 0.67 percent. In South Korea, the Kospi surged 3.26 percent and the Kosdaq rose 2 percent. Meanwhile, Hong Kong’s Hang Seng gained 0.33 percent, Taiwan’s Taiex dropped 2.24 percent, China’s CSI 300 strengthened 0.48 percent, and Australia’s ASX 200 added 0.24 percent. The Straits Times rose 0.21 percent and the FTSE Malaysia increased 0.13 percent. Asian markets rebounded from a global sell-off led by the technology sector, which reignited concerns that the AI-driven equity rally may have gone too far, too fast. On the other hand, a summary of the Bank of Japan’s policy meeting released on Wednesday showed several board members proposed further interest rate hikes after the central bank raised its benchmark rate to 1 percent this month, the highest level in 31 years. “IHSG support levels are at 5,845 to 5,750, while resistance is in the range of 6,010 to 6,070,” Lutfi added. For context, major Wall Street indices closed mostly lower on Wednesday, pressured by a continued sell-off in semiconductor stocks. The Nasdaq Composite fell 0.43 percent and the S&P 500 weakened 0.1 percent, while the Dow Jones Industrial Average gained 0.35 percent. Additionally, declining oil prices dragged down energy stocks. Shares of Exxon Mobil, Chevron, ConocoPhillips, and SLB each fell more than 2 percent, while the Energy Select Sector SPDR ETF (XLE) weakened over 1 percent.