IHSG Weakens as Investors Engage in Profit-Taking Amid Geopolitical Tensions

The Jakarta Composite Index (IHSG) at the Indonesia Stock Exchange (BEI) weakened on Thursday afternoon as investors engaged in profit-taking, triggered by concerns over escalating geopolitical tensions in the Middle East. The IHSG closed down 16.35 points, or 0.28 percent, at 5,886.03. Meanwhile, the LQ45 index of 45 leading stocks fell 2.64 points, or 0.45 percent, to 586.84. "The IHSG closed lower amidst profit-taking and external sentiment," said Phintraco Sekuritas Head of Research Ratna Lim in her analysis in Jakarta on Thursday. Investors reduced exposure to risky assets (risk-off) following a sharp correction on Wall Street indices in the United States, a rise in oil prices, a weakening of gold prices, and increasing tensions in the Middle East. During the second trading session on Thursday (11/06), the IHSG’s decline eased after it was reported that the United States had concluded its strikes against Iran and world oil prices weakened. In addition, a positive catalyst also came from the government’s plan to streamline the budget for the Free Nutritious Meals (MBG) programme. "Thus, the IHSG is still expected to have the opportunity to continue its strengthening by testing the 5,900-5,950 level tomorrow," said Ratna.