IHSG surges! Session 1 closes up 1.67%

Jakarta, CNBC Indonesia — The Jakarta Composite Index (IHSG) rose sharply in trading today, Thursday 5 March 2026. At the close of Session 1, the index gained 126.73 points, or 1.67%, to 7,703.79. IHSG even traded higher than 2% early in the session, after it had fallen 4.57% yesterday, Wednesday 4 March 2026.

By the end of Session 1, 630 stocks advanced, 127 declined, and 201 were unchanged. The value of transactions was relatively thin, at Rp 9.99 trillion. By comparison, in the previous session, the value of transactions in Session 1 stood at Rp 18 trillion.

Citing Refinitiv, IHSG was supported by banking stocks. Bank Central Asia (BBCA) rose 2.55% and contributed 18.95 index points. Then Bank Rakyat Indonesia (BBRI) gained 7.86 index points and Bank Mandiri (BMRI) 5.44 index points. Accordingly, the financial sector finished Session 1 up 2%.

Separately, regional markets also rose, led by Korea’s Kospi, which jumped more than 10% and even touched 12%. Large-cap shares such as SK Hynix and Samsung rose more than 15% and 14% respectively. The previous day, Kospi closed down 12%. In response, South Korean President Lee Jae Myung on Thursday called for the government to immediately launch a programme worth 100 trillion won (US$68 billion and Rp 1,149.06 trillion) to stabilise the country’s financial markets. This big plan relates to rising tensions in the Middle East as a threat to market confidence.

According to The Korean Times, in his opening remarks at Thursday’s Cabinet meeting, Lee warned that worsening crisis in the Middle East deteriorates the global economic and security environment. He highlighted that financial markets face increasing uncertainty, while energy supply disruptions and trade conditions could create broader difficulties for economies.

Meanwhile, markets in the Asia-Pacific region were also slowly recovering. Japan’s Nikkei rose 2.5% after a prior fall of 3%. The STI index in Singapore rose 0.56% and the Hang Seng in Hong Kong rose 0.84%.

In yesterday’s trading, in addition to geopolitical escalations, domestic equities were hit by Fitch Ratings’ announcement cutting Indonesia’s debt outlook from stable to negative. However, the long-term foreign currency rating remains at BBB or investment grade. The decision signals increased medium-term risk, even though Indonesia’s investment grade position remains unchanged. Fitch judged the revision to be driven by rising policy uncertainty and concerns about the consistency and credibility of the policy mix, especially amid centralised decision-making.