IHSG Opens Trading Up More Than 1%

Jakarta, CNBC Indonesia - The Jakarta Composite Index (IHSG) opened slightly lower on Wednesday (1/7/2026) but quickly reversed course to surge into the green. At the market opening at 09.00 WIB, the IHSG fell 0.05% or 3 points to 5,640.61. Transaction value was recorded at approximately Rp 156.13 billion, with a trading volume of 116.23 million shares across 23,906 transactions. A total of 183 stocks rose, 112 fell, and 278 were stagnant. Minutes after the market opened, the IHSG reversed direction into positive territory, strengthening up to 1.09% and touching the psychological level of 5,700. The issuers with the largest transaction values at the start of trading were BBCA, BBRI, BMRI, DSSA, and MAPI. Entering the first day of the second half of 2026, Indonesia’s financial market is expected to continue facing numerous challenges, both domestic and international. On the global front, Iran on Tuesday affirmed it would not meet with a senior US envoy, leaving long-term peace prospects uncertain. Tehran stated its focus is on finalising the details of a ceasefire agreed two weeks prior before addressing more complex issues, including its nuclear programme. Iran also asserted it will continue to control traffic in the Strait of Hormuz with Oman and plans to impose shipping tariffs from mid-August after a 60-day negotiation period ends. Despite high tensions, oil prices continue to weaken, though the UN has warned that the impact of war could still drive up food and energy prices in vulnerable countries. The temporary US-Iran agreement also includes efforts to end the Israel-Hezbollah conflict, but implementation remains doubtful. On Wednesday, S&P Global is scheduled to release China’s Caixin Manufacturing PMI data. In May 2026, Chinese manufacturing activity moderated, with the index slipping to 51.8 from a five-year high of 52.2 in April. Despite the slowdown, the figure remained above the market projection of 51.4. Growth in new orders and output moderated but remained solid, heavily supported by domestic demand. Domestically, the government officially began implementing the mandatory B50 biodiesel programme on 1 July 2026, marking a new chapter in national energy policy built over nearly two decades. Unlike previous rollouts, the B50 implementation will not be immediate. The government has set a three-month transition period to allow the distribution chain and fuel blending process to proceed gradually before all filling stations in Indonesia sell B50 fully by 1 October 2026. S&P Global will also announce Indonesia’s Manufacturing PMI data today. The PMI for April 2026 was recorded at 50.0, an improvement after a contraction in the previous month. The PMI uses 50 as the threshold; a reading above 50 indicates expansion in the business sector, while below 50 signals contraction. Additionally, the Central Statistics Agency (BPS) will publish Indonesia’s inflation data for June 2026. In May, annual inflation accelerated to 3.08%, up from 2.42% the previous month and exceeding the 2.97% expectation. The increase was mainly driven by the food sector, which surged 4.94% due to high staple food prices and distribution costs across various regions. Price pressures were also evident in housing, transportation, and healthcare. On a monthly basis, the consumer price index rose 0.28%. For the June release, consensus projects inflation will edge up to 3.1%. Inflation is expected to rise further in June 2026 amid increasing food prices and a spike in non-subsidised fuel prices against a backdrop of a weakening rupiah. The CNBC Indonesia consensus from 13 institutions forecasts the Consumer Price Index (CPI) will experience monthly inflation of 0.30% and annual inflation of 3.2%, higher than the May realisations of 0.28% and 3.08% respectively. BPS is also scheduled to release Indonesia’s trade balance data for May 2026. The national trade balance performance has been in the spotlight after the April surplus shrank sharply to US$0.09 billion, far below the US$1.5 billion expectation and the smallest surplus since April 2020. Meanwhile, Asia-Pacific markets opened mixed on Wednesday amid a weakening of the Japanese yen to a 40-year low against the US dollar. Market participants are also observing the direction of the US central bank’s interest rate policy and several key economic data releases scheduled for the day. LSEG data showed the yen weakening to touch 162.28 per US dollar, extending losses from the previous session. This condition has made investors wary of potential intervention by Japanese authorities to stem the currency’s decline. Japan’s Nikkei 225 index strengthened 1.79% in early trade, while the broader Topix index rose 1.07%. In South Korea, the Kospi index gained 1.52%, though the small-cap Kosdaq index corrected 0.42%. The Australian stock market was relatively flat, with the S&P/ASX 200 index edging down 0.05% in morning trade.