IHSG Surges 4% Driven by Investor Euphoria Following US-Iran Ceasefire
Investor euphoria risks leading to entries at peak prices, especially amid market conditions still heavily influenced by fluctuating global sentiment.
Jakarta (ANTARA) - The Composite Stock Price Index (IHSG) of the Indonesia Stock Exchange (BEI) closed higher on Wednesday afternoon, driven by investor euphoria following the implementation of a ceasefire by the United States (US) and Iran.
The IHSG closed up 308.18 points or 4.42% at 7,279.21. Meanwhile, the LQ45 index of 45 leading stocks rose 31.96 points or 4.55% to 733.62.
“The significant surge in the IHSG is inseparable from the emergence of short-term positive global sentiment, particularly news of easing geopolitical tensions between the US and Iran,” said market analyst and Founder of Republik Investor, Hendra Wardana, when contacted by Antara in Jakarta on Wednesday.
From abroad, Hendra stated that US President Donald Trump’s announcement delaying the attack plan for two weeks, followed by Iran’s move to reopen the strategic Strait of Hormuz route, was immediately welcomed positively by market players.
Fundamentally, he explained that the market is highly sensitive to geopolitical issues, especially those related to global oil distribution routes like the Strait of Hormuz.
He said that when conflict risks decrease, global investors tend to adopt a risk-on stance, returning to risky assets such as stocks in emerging markets.
“This is what has driven all sectors in the IHSG to move green, with commodity- and energy-based stocks leading the gains,” said Hendra.
He warned that sudden statements could reignite volatility in the global market, so the current rally may still be temporary or a technical rebound, not a fully solid long-term uptrend.
Therefore, according to him, the best strategy for investors is to remain selective and disciplined in taking positions, where this rebound momentum can be utilised for short-term trading, but must be accompanied by tight risk management.
“Excessive euphoria risks making investors enter at peak prices, especially amid market conditions still heavily influenced by fluctuating global sentiment,” said Hendra.
Based on the IDX-IC Sectoral Index, all eleven sectors strengthened, led by the basic materials sector which rose 8.86%, followed by the infrastructure sector and the industrials sector, each up 5.85% and 5.63% respectively.
The stocks with the largest price gains were FWCT, KUAS, RMKO, ROCK, and SOTS. Meanwhile, the stocks with the largest price declines were GSMF, ESIP, CBPE, PTSP, and WIDI.
Share trading frequency was recorded at 2,429,228 transactions, with 43.00 billion shares traded worth Rp22.62 trillion. 623 stocks rose, 101 fell, and 95 remained unchanged.