IHSG Strengthens Amid Market Scrutiny of US-Iran Conflict Developments
Jakarta — Indonesia’s composite stock index (IHSG) at the Indonesia Stock Exchange (BEI) strengthened on Wednesday as market participants monitored developments in the conflict between the United States, Israel and Iran.
The IHSG opened higher by 43.86 points or 0.59 per cent to 7,484.77. Meanwhile, the 45 leading shares index LQ45 rose 3.81 points or 0.50 per cent to 763.75.
“Despite the rebound in the stock market and rupiah strengthening, Indonesia’s financial markets are expected to face pressure in today’s trading due to persisting high global uncertainty,” stated Lotus Andalan Securities Research Team in their analysis in Jakarta on Wednesday.
Regarding developments in the Middle East conflict, market volatility was driven by conflicting information about the security of oil shipping routes through the Strait of Hormuz. Reports initially emerged that the US Navy had successfully escorted a tanker, but this was subsequently denied by the US government itself. Additionally, reports suggested Iran had allegedly placed mines in the Strait of Hormuz, further heightening investor concerns and continuing to pressure global stock markets.
Crude oil prices on today’s trading at 09.40 Western Indonesia Time showed WTI crude rising 1.67 per cent to 84.84 US dollars per barrel, whilst Brent crude rose 1.36 per cent to 88.99 US dollars per barrel.
Market participants are also primarily focused on the release of US inflation data, which will determine the direction of the Federal Reserve’s benchmark interest rate policy at the upcoming FOMC meeting. Should inflation exceed expectations, higher interest rates may be maintained longer, potentially strengthening the US dollar and pressuring stock markets as well as emerging market currencies.
From a macroeconomic perspective, several Asian regional data points indicate improving fundamentals, including Japan’s fourth-quarter 2025 economic growth revised upward to 0.3 per cent and China’s substantial trade surplus reaching 213.62 billion US dollars.
Domestically, market participants are awaiting a press conference by Finance Minister Purbaya Yudhi Sadewa on the fiscal situation regarding February 2026 state budget developments, as well as accelerated selection of Financial Services Authority (OJK) leadership to maintain financial sector stability amid global turbulence.
Meanwhile, Bank Indonesia reported the January 2026 Real Sales Index grew 5.7 per cent year-on-year.
On Tuesday (10 March), European stock exchanges strengthened across the board, including the Euro Stoxx 50 rising 2.73 per cent, the British FTSE 100 index rising 1.59 per cent, the German DAX index rising 2.39 per cent, and the CAC index rising 1.79 per cent.
Meanwhile, Wall Street stock exchanges weakened on Tuesday (10 March), with the Nasdaq Composite index falling 0.04 per cent to 24,856.47, the S&P 500 index declining 0.21 per cent to 6,781.48, and the Dow Jones index weakening 0.07 per cent to 47,706.51.
Asian regional stock exchanges this morning showed mixed results. The Nikkei index rose 1,139.40 points or 2.10 per cent to 55,387.80, the Hang Seng index rose 54.73 points or 0.21 per cent to 26,014.63, the Shanghai index rose 3.47 points or 0.08 per cent to 4,126.62, whilst the Strait Times index fell 9.70 points or 0.20 per cent to 4,850.93.