IHSG Strengthens Amid Concerns Over Breach of US-Iran Ceasefire

Jakarta (ANTARA) - The Composite Stock Price Index (IHSG) of the Indonesia Stock Exchange (BEI) closed higher on Thursday afternoon amid concerns over the breach of the ceasefire agreement between Iran and the United States (US) and Israel. The IHSG closed up 28.38 points or 0.39% at 7,307.59. Meanwhile, the LQ45 index of 45 leading stocks rose 0.28 points or 0.04% to 733.90. “Asian markets were dominated by weakness, in line with a slight rise in oil prices amid ongoing uncertainty regarding the ceasefire agreement between Iran and the US and Israel,” said Maximilianus Nico Demus, alias Nico, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, in his analysis in Jakarta on Thursday. Developments in the Middle East conflict saw a senior Iranian official state that several elements of the ceasefire proposal have been violated following Israel’s latest attack on Lebanon, while Tehran continues to largely block the Strait of Hormuz. Global crude oil prices reversed course to strengthen, with West Texas Intermediate (WTI) at $97.44 per barrel and Brent at $97.77 per barrel during Thursday (9/4) trading at 4:54 PM WIB. On the other hand, the latest policy meeting minutes from the US Federal Reserve showed that more members now see a potential interest rate hike as a necessary step to curb inflation, although many still hope the next move could be a rate cut. Domestically, President Prabowo Subianto inaugurated an electric vehicle factory and expressed his commitment to supporting downstreaming. Additionally, he stated that the national fuel oil (BBM) supply is secure for the next year, reducing concerns over the unresolved escalation of the Middle East conflict. Opening lower, the IHSG remained in negative territory until the close of the first trading session. In the second session, the IHSG moved into positive territory until the close of trading. Based on the IDX-IC Sectoral Index, four sectors strengthened, led by the energy sector which rose 2.03%, followed by the non-primary consumer goods sector and the infrastructure sector, which increased by 1.82% and 0.47% respectively. Meanwhile, seven sectors declined, with the industrial sector falling the most at minus 1.36%, followed by the financial sector and the primary consumer goods sector, which dropped 1.24% and 0.68% respectively. The stocks with the largest gains were PEGE, HDFA, ASPI, APIC, and MSIN. The stocks with the largest declines were TEBE, GSMF, GULA, LFLO, and MEGA. Share trading frequency was recorded at 2,242,170 transactions, with 29.04 billion shares traded worth Rp16.97 trillion. 278 stocks rose, 378 stocks fell, and 164 remained unchanged. Regional Asian stock markets this afternoon included the Nikkei index weakening by 413.10 points or 0.78% to 55,895.32, the Shanghai index weakening by 28.83 points or 0.73% to 3,966.17, the Kuala Lumpur index weakening by 10.07 points or 0.59% to 1,686.24, and the Straits Times index weakening by 18.97 points or 0.38% to 4,977.08.