IHSG Slips 4.3 Per Cent Amid Oil Price Sentiment

The Jakarta Composite Index (IHSG) closed down 4.32 per cent to 7,596 in the first trading session on Wednesday, 4 March 2026. The index’s decline occurred amid sentiment of rising world oil prices following the Iran-Israel conflict. In early trading, the IHSG had fallen as much as 2.76 per cent to 7,720. Brent crude had breached the US$80 per barrel level. A Kiwoom Sekuritas Indonesia analysis said that as long as oil prices remain below US$90, the market impact is typically volatility of sentiment. However, if Brent breaks US$100 accompanied by physical distribution disruption, the risk could shift into an energy shock that could press inflation, the rupiah, and the IHSG more broadly, Kiwoom Sekuritas wrote in its analysis on Wednesday, 4 March 2026. Kiwoom said the swings in oil prices affect trading sectors on the IHSG. The sectors likely to benefit are energy sectors such as oil and coal. Oil and gas issuers such as APEX, ENRG, ELSA, MEDC and coal players such as AADI, ADRO, ITMG, PTBA may gain positive sentiment if global energy prices rise. On commodities, surging energy prices usually push commodity inflation, ultimately strengthening the sentiment for the resources sector. Nevertheless, some IHSG sectors are expected to be pressured by the world’s oil surge. These include transportation and logistics, as fuel costs are a major component of operating costs. Next, the manufacturing sector due to higher energy costs that can squeeze margins. Another sector that could be pressured is consumer staples. If energy rises spur inflation, purchasing power for households could be eroded. Referring to data from the Indonesia Stock Exchange (BEI), IHSG in session I today fell 4.32 per cent to 7,596.9, compared with 7,939.7 previously. Trading value in the early session was recorded at IDR 29.8 trillion, with a share volume of 44.4 billion.