IHSG weakens as investors await BI-Rate decision and MSCI release
The Indonesia Composite Index (JCI) on the Indonesia Stock Exchange (IDX) moved lower on Thursday, as market participants adopted a ‘wait and see’ approach regarding Bank Indonesia’s (BI) benchmark interest rate policy and announcements from global index provider MSCI.
The JCI opened lower by 28.85 points, or 0.46 per cent, to the 6,191.89 level. Meanwhile, the LQ45 index, comprising 45 blue-chip stocks, fell by 5.28 points, or 0.84 per cent, to 619.95.
“The JCI is expected to move sideways with a downward trend within the 6,100-6,350 range,” said Ratna Lim, Head of Research at Phintraco Sekuritas, in her analysis in Jakarta on Thursday.
Domestically, investors are tending towards caution ahead of several upcoming agendas, specifically awaiting the results of the Bank Indonesia Board of Governors Meeting (RDG) held on Thursday (18/6).
Additionally, investors are anticipating the MSCI Global Market Accessibility Review announcement on Friday (19/6), the FTSE index rebalancing on Friday (19/6), and the MSCI Annual Market Classification Review on Wednesday (24/6) next week.
Internationally, as market expectations suggested, the US Federal Reserve maintained its benchmark interest rate at the 3.5-3.75 per cent level. However, several Fed officials indicated that interest rates could increase in 2026.
The current median interest rate projection stands at 3.8 per cent by the end of the year, up from the 3.4 per cent projection for March 2026, indicating that the committee views at least one rate hike as necessary in 2026.
On the other hand, uncertainty has increased following comments from Fed Chairman Kevin Warsh, who abstained from that projection; however, his comments leaned towards prioritising price stability, suggesting a more hawkish stance from the Fed.
The market responded to this with a sharp increase in the 2-year US Treasury yield by 16 bps to 4.216 per cent.
Meanwhile, inflation in the UK remained at 2.8 per cent (yoy) in May 2026, which was below the 3 per cent (yoy) estimate. This has strengthened expectations that the Bank of England (BoE) will maintain its interest rate at 3.75 per cent.
In Wednesday’s (17/06) trading, European stock markets all gained strength, including the Euro Stoxx 50 rising 0.80 per cent, the UK’s FTSE 100 up 0.14 per cent, Germany’s DAX up 0.10 per cent, and France’s CAC 40 up 0.20 per cent.
Conversely, US Wall Street markets all declined on Wednesday (17/06), with the Dow Jones Industrial Average falling 0.98 per cent, the S&P 500 dropping 1.21 per cent, and the Nasdaq Composite decreasing by 0.99 per cent.
In regional Asian markets this morning, the Nikkei index rose 1.38 per cent to 70,869.00, the Shanghai index fell 0.31 per cent to 4,094.31, the Hang Seng fell 1.78 per cent to 23,827.90, and the Straits Times index rose 0.14 per cent to 5,184.78.