IHSG poised for mixed trading amid combined domestic and global sentiment factors
The Indonesia Stock Exchange’s Composite Index (IHSG) is expected to trade mixed on Monday due to a combination of domestic and global sentiment factors. The IHSG opened up 25.60 points (0.42%) to 6,187.65, while the LQ45 index of 45 leading stocks rose 3.05 points (0.49%) to 623.49.
“Technically, the IHSG is expected to trade in a range of 6,000-6,250 this week,” said Ratna Lim, Head of Research at Phintraco Securities, in her analysis on Monday in Jakarta.
Domestically, Ratna expects market participants to anticipate MSCI index rebalancing by the end of May, amid a shortened trading week. Furthermore, investors are expected to remain cautious due to unclear implementation of new government policies.
From abroad, Kevin Warsh was officially appointed as Chairman of the US Federal Reserve on Friday, 22 May, replacing Jerome Powell. Meanwhile, US President Donald Trump stated that an agreement is being made to reopen the Strait of Hormuz, but Iranian state media denied the claim. Iranian state media reported that dozens of ships have passed through the Strait of Hormuz under Iranian supervision. Developments regarding US-Iran agreements and their impact on oil prices will continue to influence global markets.
US economic data to be monitored this week includes the PCE Price Index, Durable Goods Orders, and the second estimate of Q1 2026 GDP. On Friday, 22 May, European stock markets rose collectively, with the Euro Stoxx 50 gaining 0.99%, the UK’s FTSE 100 up 0.22%, Germany’s DAX rising 1.15%, and France’s CAC 40 climbing 0.37%. US Wall Street markets also rose on Friday, with the Dow Jones Industrial Average up 0.58%, the S&P 500 gaining 0.37%, and the Nasdaq Composite rising 0.42%. Asian regional markets opened higher this morning, with Japan’s Nikkei rising 1,796.43 points (2.84%) to 65,135.50, China’s Shanghai Composite gaining 25.35 points (0.62%) to 4,138.25, Hong Kong’s Hang Seng up 219.51 points (0.86%) to 25,606.03, and Singapore’s Straits Times Index climbing 31.74 points (0.63%) to 5,099.89.