IHSG Strengthens Tracking Global Markets, Investors Eye US-Iran Peace Prospects
The Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (BEI) moved higher on Friday (12/6/2026), tracking global stock markets amid market optimism that a peace agreement will be reached between the United States (US) and Iran. The IHSG opened up 74.38 points, or 1.26 percent, at 5,960.27. Meanwhile, the LQ45 index of 45 leading stocks rose 9.97 points, or 1.70 percent, to 596.81.
‘Kiwoom Research reminds investors/traders not to take buying positions first, to anticipate social unrest/other global-domestic factors during the weekend,’ said Kiwoom Sekuritas Head of Research Liza Camelia Suryanata in a study in Jakarta on Friday.
From abroad, US President Donald Trump stated that the final discussions and points of a peace agreement with Iran have been approved by all relevant parties, and the signing could take place in the near future. Trump also said the Strait of Hormuz will be reopened after the agreement is signed, while the US naval blockade of Iran will be lifted.
Nevertheless, tensions have not fully subsided. The US and Iran continued to launch attacks against each other until Thursday (11/6), while the market remains watchful of the risk of disruption to global energy supplies from the Strait of Hormuz.
Global crude oil prices slumped after Trump cancelled plans for an attack on Iran. Brent crude fell 4.5 percent to 88.91 US dollars per barrel, while WTI dropped 4.2 percent to 86.26 US dollars per barrel.
European stock markets strengthened after the European Central Bank (ECB) raised interest rates by 25 basis points to 2.25 percent. The ECB revised its inflation projections to 3.0 percent in 2026, 2.3 percent in 2027, and 2.0 percent in 2028, while the Eurozone economic growth projection was cut to 0.8 percent.
On the other hand, market participants expect at least one interest rate hike from the US Federal Reserve before the end of the year, with focus on the first meeting chaired by Kevin Warsh as the new Fed Chair on 17 June 2026.