IHSG Strengthens Tracking Asia on US-Iran Peace Deal Optimism

The Indonesia Stock Exchange (BEI) Jakarta Composite Index (IHSG) closed higher on Friday, driven by market optimism over a potential peace agreement between the United States and Iran. The IHSG strengthened 121.63 points, or 2.07 per cent, to 6,007.66. Meanwhile, the LQ45 index of 45 leading stocks rose 10.61 points, or 1.81 per cent, to 597.45.

Phintraco Sekuritas Head of Research Ratna Lim stated that external positive factors driving the rally included expectations of a US-Iran peace deal and a correction in crude oil prices to below 90 US dollars per barrel. Domestically, positive sentiment stemmed from government statements regarding budget efficiency for the Free Nutritious Meals (MBG) programme and a 50 per cent reduction in the target for the development of ‘Merah Putih’ village cooperatives.

Looking ahead to next week, market participants are anticipating the results of the Bank Indonesia (BI) Board of Governors Meeting on Thursday (18/6), with consensus expecting a 25 basis point increase in the BI Rate to 5.75 per cent. The IHSG is estimated to potentially move within a support range of 5,900-6,000 and a resistance range of 6,150-6,220 next week.

The IHSG, which opened higher, remained in positive territory through the first trading session and continued in the green until the market close. Based on the IDX-IC sectoral indices, ten sectors advanced, led by the raw materials sector which rose 4.19 per cent, followed by the energy and industrial sectors which climbed 5.03 per cent and 4.17 per cent respectively. The healthcare sector was the sole decliner, falling 2.28 per cent.

Stocks recording the largest price gains included KIOS, APSR, PART, BUKM, and RLCO, while PSAB, BABY, LCKM, MPRO, and RISE experienced the largest declines. Trading frequency reached 2,401,960 transactions, with 37.47 billion shares traded, valued at Rp21.68 trillion. Overall, 615 stocks advanced, 108 declined, and 93 remained unchanged.

In regional Asian markets, the Nikkei index strengthened 2.87 per cent to 66,058.00, the Shanghai index weakened 1.12 per cent to 4,031.51, the Hang Seng index rose 1.93 per cent to 24,718.10, and the Strait Times index gained 0.76 per cent to 5,025.80.