IHSG Strengthens 1.5 Percent, Boosted by Commodity Stocks Amid Rising Oil Prices

The Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (BEI) closed higher in the first trading session on Thursday, supported by commodity and conglomerate stocks triggered by rising global oil prices. The IHSG closed the first session up 95.67 points, or 1.51 percent, at 6,430.15. Meanwhile, the LQ45 index of 45 leading stocks rose 6.20 points, or 0.98 percent, to 638.75. “We estimate today’s IHSG strengthening was driven by gains in conglomerate issuers and energy and gold commodity issuers, amid rising crude oil and gold prices due to the re-escalation of the Middle East conflict,” said MNC Sekuritas analyst Herditya Wicaksana, also known as Didit. Sectors related to energy and gold commodities experienced increases during the first session, including the energy sector (IDXEnergy) which rose 4.32 percent, and the basic materials sector (IDXBasic) which recorded a 2.71 percent gain. Alongside this increase, Herditya projected the IHSG has the opportunity to move towards the 6,447-6,476 range in today’s trading. Global crude oil prices rose to their highest level in six weeks after Houthi attacks on a Saudi tanker in the Red Sea heightened concerns about energy supply disruptions. West Texas Intermediate (WTI) crude rose 1.37 percent to around 88.02 US dollars per barrel, while Brent crude rose 2.01 percent to around 95.96 US dollars per barrel. Gold prices also strengthened to 4,130 US dollars per ounce, driven by increased demand for safe-haven assets. At the close of the first session on the Indonesia Stock Exchange, trading frequency was recorded at 1,728,000 transactions, with 32.18 billion shares traded worth 11.86 trillion rupiah. A total of 470 stocks rose, 175 fell, and 320 were unchanged.