Jakarta Composite Index strengthens amid global markets rally ahead of Lebaran holidays

Indonesia’s Jakarta Composite Index (IHSG) closed 1.20 per cent higher at 7,106.84 points, with the blue-chip LQ45 index gaining 1.22 per cent to 722.41 points. Regional Asian markets were dominated by gains driven by overnight strength on Wall Street, according to Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas.

International sentiment was further bolstered by market expectations that the US Federal Reserve will maintain interest rates unchanged at its Federal Open Market Committee (FOMC) meeting on 17-18 March 2026.

Oil prices remained volatile following Iran’s escalated attacks on energy infrastructure around the Persian Gulf, though investor appetite was supported by optimism regarding the imminent reopening of the Strait of Hormuz. US President Donald Trump requested that China delay its meeting with President Xi Jinping by approximately one month to focus on the Iran conflict.

Domestically, the government reiterated its commitment to fiscal discipline, emphasising that the budgetary deficit ceiling of 3 per cent of GDP will only be breached under severe crisis conditions. Bank Indonesia’s Monetary Policy Board maintained the BI-Rate at 4.75 per cent during its March 2026 meeting to strengthen the rupiah’s stability against deteriorating global conditions stemming from Middle Eastern conflicts, whilst maintaining the 2026-2027 inflation target of 2.5 plus or minus 1 per cent.

The Indonesian stock exchange will observe a long holiday from Wednesday 18 March, reopening on Wednesday 25 March, to mark the observance of Nyepi and Eid al-Fitr 2026.

The IHSG opened higher and remained in positive territory throughout both trading sessions. Nine sectors advanced, led by the transportation and logistics sector, which gained 3.46 per cent, followed by raw materials and infrastructure sectors, each rising 2.62 per cent and 2.10 per cent respectively. Two sectors declined, with the financial sector registering the largest fall of 0.31 per cent, followed by the non-primary consumer goods sector, which dropped 0.15 per cent.

Stocks recording the largest gains included LAPD, EXCL, ICON, EMTK and PYFA, whilst PSDN, POLA, NZIA, ZATA and RLCO experienced the sharpest declines. Trading volume reached 1,555,645 transactions, with 30.92 billion shares traded valued at Rp23.86 trillion. A total of 457 stocks advanced, 214 declined, and 148 remained unchanged.

Regional Asian indices this afternoon showed mixed performance, with Japan’s Nikkei falling 50.70 points or 0.09 per cent to 53,700.40, Shanghai’s index declining 34.88 points or 0.85 per cent to 4,049.91, Hong Kong’s Hang Seng rising 34.52 points or 0.13 per cent to 25,868.54, and Singapore’s Straits Times index gaining 67.28 points or 1.38 per cent to 4,935.97.