IHSG Plummets 3.27 Per Cent: Bargain Buying Opportunity or Investor Trap?
Jakarta — The sharp decline of the Composite Stock Price Index (IHSG) in recent days has placed retail investors at a crossroads: capitalising on cheaper stock valuations or restraining themselves amid persistent market volatility and risk.
On one hand, the market correction presents an opportunity to buy shares at lower valuations. On the other hand, the continued high volatility means losses remain potentially substantial if investors enter without a well-thought-out strategy.
Pressure on the IHSG was evident in trading on Monday, 9 March 2026. At closing, the index weakened by 248.318 points or fell 3.27 per cent to the level of 7,337.369. The index movement is expected to remain volatile during Tuesday’s trading, 10 March 2026.
Capital market observer and founder of Republik Investor, Hendra Wardana, believes market volatility has the potential to persist in the short term. As long as geopolitical tensions in the Middle East remain unresolved and oil prices remain at elevated levels, global markets tend to maintain a cautious stance.
“In this context, the IHSG has the technical potential to move fluctuatively within a consolidation range before gradually rebuilding recovery momentum,” Hendra told Kompas.com.
In a still-turbulent market, Hendra considers the most rational strategy for investors to be gradual accumulation of stocks with strong fundamentals.
According to him, a gradual approach is important to anticipate the possibility of continued volatility in the market. Investors are also not advised to deploy their entire funds at once, but rather to utilise each correction as an opportunity to add positions in a disciplined manner.
Investment focus, he said, should remain directed towards blue-chip stocks with solid fundamentals, high liquidity, and relatively stable performance records.
“With such an approach, investors can use the market correction phase as momentum to build a medium to long-term portfolio at more attractive valuations,” he explained.
From a global perspective, an escalation of conflict in the Middle East involving Iran has triggered a surge in global oil prices to above 100 US dollars per barrel. With the rupiah exchange rate at Rp 16,500, this level equates to approximately Rp 1,650,000 per barrel.
The surge in energy prices has increased concerns about global inflation and amplified uncertainty in financial markets.
Hendra noted that global investors tend to engage in risk-off behaviour, reducing exposure to risky assets such as stocks in developing countries and shifting to safe-haven assets such as the US dollar.
The impact is evident from the simultaneous weakness of Asian stock markets and pressure on emerging market currencies, including the rupiah.