IHSG strengthens as market welcomes first-half earnings season

The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (BEI) moved higher on Monday as market participants welcomed the release season for corporate financial reports for the second quarter of 2026 and the first half of 2026. The IHSG opened up 21.95 points, or 0.36 percent, at 6,197.48. Meanwhile, the LQ45 index of 45 leading stocks rose 2.93 points, or 0.47 percent, to 624.84. “Technically, the IHSG is expected to have the opportunity to test the 6,225-6,280 level this week,” said Phintraco Sekuritas Head of Research Ratna Lim in her analysis in Jakarta on Monday. Domestically, over the past 10 years, the IHSG has historically always strengthened in July, coinciding with the release season for second-quarter 2026 and first-half 2026 financial reports from issuers on the Indonesian capital market. This week, market participants are awaiting the outcome of the Bank Indonesia Board of Governors Meeting regarding the BI-Rate policy decision and are anticipating credit growth data on Wednesday (22/07), as well as M2 Money Supply data on Thursday (23/7). Ratna said that improving domestic sentiment was marked by the start of net buying by foreign investors for two consecutive days last week. “However, rising oil prices are a risk to watch out for because they affect the prospects for the state budget deficit, inflation, the Rupiah, and interest rates,” said Ratna. From abroad, the development of the conflict between the United States and Iran could potentially return to global focus amid rising oil prices, which may influence the outlook for central bank interest rate hikes. Meanwhile, the technology sector related to artificial intelligence will be tested by the release of financial reports from several hyperscaler companies, chip manufacturers, and infrastructure operators, including Alphabet, Intel, Tesla, and GE Vernova. From the European region, the European Central Bank will decide on its monetary policy, while the UK will release inflation data, unemployment rates, and retail sales figures. In trading on Friday (17/07) last week, European bourses moved variably, with the Euro Stoxx 50 weakening 0.84 percent, the UK’s FTSE 100 strengthening 0.27 percent, Germany’s DAX index weakening 0.34 percent, and France’s CAC 40 index weakening 0.47 percent. Meanwhile, Wall Street markets in the US closed lower on Friday (17/07), with the S&P 500 index weakening 1.01 percent to 7,457.69, the Nasdaq Composite index weakening 1.40 percent to 25,520.24, and the Dow Jones Industrial Average weakening 0.77 percent to 52,146.42. In Asian regional stock markets this morning, the Shanghai index strengthened 0.47 percent to 3,781.95, the Hang Seng index strengthened 1.90 percent to 25,028.00, the Kospi index weakened 3.49 percent to 6,582.66, and the Straits Times index strengthened 0.02 percent to 5,510.08. The Nikkei index in Japan was closed for the Umi no Hi, or Marine Day, holiday.