IHSG Weakens at Opening, Pressured by Asian and Global Market Sentiment
The Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (BEI) moved lower on Wednesday morning, following the weakening of Asian and global stock markets. The IHSG opened down 2.32 points, or 0.04 percent, at 5,984.18. Meanwhile, the LQ45 index of 45 leading stocks fell 0.48 points, or 0.08 percent, to 594.44.
Investors are observing Indonesia’s inclusion in the S&P Dow Jones Indices 2027 market classification watchlist, which could potentially increase foreign investor caution if not followed by improvements in market accessibility, according to the Lotus Andalan Sekuritas Research Team.
From abroad, a combination of sentiment is causing the market to lean towards a risk-off mode due to the weakening of Wall Street in the United States, rising crude oil prices, and increasing geopolitical tensions in the Middle East.
Domestically, investors are also monitoring Indonesia’s entry into the S&P Dow Jones Indices 2027 market classification watchlist, which has the potential to heighten foreign investor prudence if market accessibility is not improved.
Furthermore, geopolitical conflict has escalated again after the US launched new strikes against Iran and revoked Iranian oil export permits, triggering a surge in oil prices. Brent crude rose 3.0 percent to 74.16 US dollars per barrel, while WTI strengthened nearly 3.0 percent to 70.44 US dollars per barrel.
With this combination of sentiment, the IHSG’s movement is expected to potentially undergo consolidation with a cautious bias, although relatively solid domestic fundamentals may still limit selling pressure, the Lotus Andalan Sekuritas Research Team noted.
On the other hand, there is positive sentiment from banking credit growth reaching 11.51 percent year-on-year (yoy), with third-party funds (DPK) growing 13.47 percent yoy, while asset quality remains solidly maintained.
Additionally, US economic data showed mixed signals. The trade deficit for May 2026 widened to 77.6 billion US dollars, while the economic optimism index improved and public inflation expectations rose to 3.7 percent. This data reinforces the view that the Federal Reserve will remain cautious in easing monetary policy.