IHSG strengthens on 'risk on' sentiment as Fed holds rates
Jakarta (ANTARA) - Indonesia’s Composite Stock Price Index (IHSG) on the Indonesia Stock Exchange (IDX) moved higher on Thursday, driven by investors’ risk-on sentiment, as the US central bank, the Federal Reserve, held its benchmark interest rate.
The IHSG opened 18.89 points, or 0.31 per cent, higher at 6,110.28. Meanwhile, the group of 45 leading stocks, or the LQ45 Index, rose 2.52 points, or 0.42 per cent, to 609.04.
“Amid various external and internal sentiments as well as technical factors, the IHSG is expected to test the psychological level of 6,000 in Thursday’s trading (30/7),” said Ratna Lim, Head of Research at Phintraco Sekuritas, in her review in Jakarta on Thursday.
From overseas, the US central bank, the Fed, through the FOMC, maintained its benchmark interest rate at 3.5–3.75 per cent, in line with expectations, thereby removing some of the concerns among market players regarding the possibility of a rate hike.
Nevertheless, three Fed officials disagreed with the decision and opted for tighter monetary policy, underscoring how far oil price volatility has complicated the central bank’s task.
On the other hand, indications from the bond market that the Fed may be falling behind in its efforts to bring down inflation, as the central bank chose to keep rates unchanged, also weighed negatively on US markets.
Fed Chair Kevin Warsh stressed that the committee’s decision was crucial and that it would not hesitate to act. However, this statement failed to convince the bond market.
Meanwhile, Brent and WTI oil prices closed more than 7 per cent and 6 per cent higher at US$90 per barrel and US$84 per barrel respectively, after US President Donald Trump said the United States would strike Iran hard in retaliation for a surprise attack attempt on US forces in the Middle East.
Domestically, the IDX announced the results of its evaluation of the IDXBUMN20 index, effective from 5 August 2026 to 2 February 2027. In this evaluation, there were no constituent changes, so all 20 stocks remain in the index.
Nevertheless, the IDX adjusted the number of shares used to calculate the index as well as the weighting of each listed company.
Meanwhile, the Financial Services Authority (OJK), together with the SROs, continues to strengthen reforms of the Indonesian capital market ahead of the MSCI Index Review in November 2026. These steps are being taken through intensive communication with global index providers and reinforced implementation of various capital market reform agendas.
The OJK is targeting the issuance of the OJK Regulation (POJK) on the Demutualisation of the Indonesia Stock Exchange in the second week of September 2026. The regulator is currently drafting the implementing rules of Law Number 4 of 2026, involving various stakeholders.
In Wednesday’s trading (29/7), European exchanges were mixed: the Euro Stoxx 50 fell 0.70 per cent, the UK’s FTSE 100 rose 0.34 per cent, Germany’s DAX slipped 0.01 per cent, and France’s CAC 40 declined 0.60 per cent.
Meanwhile, Wall Street weakened on Wednesday (29/7): the S&P 500 fell 2.19 per cent to 7,316.15, the Nasdaq Composite lost 2.06 per cent to 27,192.31, and the Dow Jones Industrial Average dropped 2.19 per cent to 51,594.14.
Asian regional stock markets this morning saw the Nikkei rise 2.15 per cent to 62,757.00, the Shanghai index fall 0.07 per cent to 4,825.95, the Hang Seng decline 1.65 per cent to 7,264.76, and the Straits Times slip 0.61 per cent to 5,678.92.