Reasons Behind IHSG's 2.19% Drop Ahead of Long Weekend
Pressure on the Composite Stock Price Index (IHSG) intensified further. The IHSG closed down 157.66 points or 2.19% at the level of 7,026.78.
A total of 558 stocks declined, 184 rose, and 216 remained unchanged. Trading value reached Rp 12.76 trillion, involving 23.93 billion shares in 1.77 million transactions. Market capitalisation also fell to Rp 12,305 trillion.
According to Refinitiv, the utilities sector plummeted the most, by 10.53%. This was followed by basic materials at -5.68% and technology at -2.75%.
The utilities sector’s steep decline was led by Barito Renewables Energy (BREN) shares, which dropped 12.73% to 4,800. BREN contributed -25.83 points to the day’s index decline.
Additionally, several other shares from Prajogo Pangestu’s emitters also featured among the top laggards, namely Barito Pacific (BRPT) at -10.13 points and Chandra Asri Pacific (TPIA) at -8.48 points.
Throughout the day, the IHSG moved within the range of 7,019.23-7,161.80. From the morning, the IHSG remained in the red zone after the latest speech by US President Donald Trump on the Iran war emerged before trading opened.
Trump emphasised that the “Epic Fury” operation in Iran would continue until all strategic objectives were achieved. A decisive strike would soon be launched.
Trump stated that in the next two to three weeks, the US would launch a “very hard” attack on Iran, causing significant impact.
“We will take them back to the Stone Age,” he said in his state of the union address at the White House on Wednesday (1/4/2026) evening local time.
He also reiterated that regime change was not the primary goal of the operation, although he noted that many Iranian leaders had been killed during the conflict.
He warned that if no agreement was reached soon, the US was prepared to strike Iran’s critical infrastructure, including power plants, simultaneously.
However, Trump added that Iran’s oil facilities were not yet targets, although he said they would be the easiest to destroy.
In his statement, Trump also claimed that Iran’s air defence capabilities had been crippled. “They have no air defence. Their radars are destroyed. We are unstoppable,” he said.
Trump also highlighted the impact of strikes on Iran’s nuclear facilities, previously hit by B-2 bombers. He said the damage was so extensive that it would take months before the area could be approached again. He emphasised that the US would strike again if Iran attempted to revive its programme.
“We hold all the cards,” Trump said.
In tandem with this, oil prices boiled over once more. Brent crude was recorded at US$108.89 per barrel, up more than 7.65%. Similarly, West Texas Intermediate (WTI) rose to US$107.86 per barrel, surging 7.71%.
Asian stock markets also flared up again. South Korea’s Kospi index plunged 4.47%, and Japan’s Nikkei fell 2.38%. Hong Kong’s Hang Seng dropped 0.7%, and Australia’s ASX200 declined 1.06%.