JCI Surges Sharply as Investors Begin Bargain-Buying Cheap Stocks
The Jakarta Composite Index (IHSG) closed up by 133.48 points, or 1.76%, at 7,710.54. In line with the main index, the LQ45 index of 45 leading stocks rose by 15.37 points (1.99%) to 787.82.
Ratna Lim, Head of Research at Phintraco Sekuritas, said the market rebound in IHSG was in line with expectations. While geopolitical tensions in the Middle East, including the US-Israel and Iran conflicts, continue to shadow the rupiah, domestic and foreign investors have started to see an accumulation opportunity at lower prices.
“IHSG rebounded on the positive sentiment from a firmer global stock market and bargain hunting. However, profit-taking still occurred in sectors that had already rallied, such as oil and gas,” Ratna Lim said in Jakarta.
Market participants are currently in a wait-and-see mode awaiting two crucial macroeconomic data releases:
Based on IDX-IC Sectoral Index data, almost all sectors traded in the green. The non-prime consumer goods sector posted the largest gain of 3.39%, followed by the industrial sector at 2.66% and the raw materials sector at 2.29%. Only one sector registered a slight decline, the Transportation & Logistics sector, down 0.01%.
Trading frequency today was very high, recording 2,084,435 transactions. Some 34.46 billion shares changed hands with total turnover of Rp17.94 trillion. The majority of stocks, or 597 issuers, posted gains.
The IHSG’s strength also aligned with a positive trend in regional Asian stock markets this afternoon.
Bargain hunting is the strategy of buying stocks deemed very cheap or trading below intrinsic value after a significant market downturn.
The rise in the IHSG today was driven by selective buying by investors in discounted stocks, supported by positive sentiment from global markets, though geopolitical risks remain.
A slowdown in Non-Farm Payrolls data typically provides a positive sentiment for emerging markets like Indonesia, as it reduces pressure on the US Federal Reserve to raise rates aggressively.
IHSG opened higher on Thursday morning (5/3/2026) by 118.29 points to 7,695.35. See technical analysis, the latest Rupiah exchange rate, and recommended stocks here.