Reasons Behind IHSG's 2.75% Surge at Opening

The Composite Stock Price Index (IHSG) opened strongly, surging 2.75% this morning on Wednesday (8 April 2026). The index rose to 7,162.41, gaining 191 points.

Sixty-nine stocks declined, 351 rose, and 210 remained unchanged. Trading value reached Rp5,554.24 billion, involving 846 million shares in 42,676 transactions.

Market capitalisation also climbed to Rp12,573 trillion.

According to Refinitiv data, all trading sectors strengthened today, with the sharpest gains in infrastructure, basic materials, and financial sectors.

Blue-chip issuers today collectively drove the IHSG’s performance, with conglomerates’ companies also seeing significant increases.

The main reason for the IHSG’s significant rise today was the US-Iran ceasefire in the Middle East, providing some hope and certainty for investors. Additionally, FTSE’s policy to retain Indonesia’s stock market rating delivered good news for investors.

Meanwhile, sectors that investors previously favoured during the war, such as oil and gas and coal, weakened together today.

Bank Rakyat Indonesia (BBRI) shares were the main driver of the IHSG’s performance, contributing 19 points, followed by BBCA, Bank Mandiri (BMRI), BREN, and ASII.

Meanwhile, the IHSG laggards today were AADI, MEDC, ITMG, AKRA, and PTBA.

Asia-Pacific stock markets rallied together on Wednesday (8 April 2026) after US President Donald Trump announced an agreement to suspend plans for strikes on Iranian infrastructure for two weeks. The decision was made on the condition that Iran agrees to fully, immediately, and safely open the Strait of Hormuz.

According to CNBC, in his statement on Truth Social, Trump emphasised that the agreement depends on Iran’s commitment to open that vital route. He described the step as an effort to ease geopolitical tensions that previously triggered global market concerns.

Iranian Foreign Minister Abbas Araghchi, via a post on platform X, stated that Iran’s armed forces would halt defensive operations. He also added that safe passage in the Strait of Hormuz could be coordinated with Iran’s military over the next two weeks.

In response to the news, the price of US West Texas Intermediate crude oil plunged more than 16% to US$94.23 per barrel. This sharp decline reflects the easing of concerns over global energy supply disruptions.

Significant strengthening occurred in Asian markets, with South Korea’s Kospi index jumping 5.3% and Kosdaq rising 3.4%. Leading stocks like Samsung Electronics and SK Hynix surged 7.25% and 9.2%, respectively.

In Japan, the Nikkei 225 index rose 4.5%, while the Topix gained 3.2%. Meanwhile, Australia’s S&P/ASX 200 index also climbed 2.7%, reflecting widespread positive sentiment in the region.

The Hong Kong market is also expected to strengthen after the holiday, with Hang Seng futures at 25,233 compared to the previous close of 25,116.53. This indicates investor optimism regarding short-term geopolitical stability.

Thornburg Investments portfolio manager Josh Rubin stated that the decline in energy prices could pressure global inflation. This condition is seen as opening opportunities for central banks to consider easing interest rate policies.

In the United States, major index futures also strengthened, with the Dow Jones up 1.5%, S&P 500 adding 1.6%, and Nasdaq 100 gaining 1.7%. This positive sentiment aligns with the easing of geopolitical tensions and falling energy prices.

In the previous session, the S&P 500 rose slightly 0.08% to 6,616.85, and the Nasdaq Composite added 0.10% to 22,017.85. Meanwhile, the Dow Jones Industrial Average fell 0.18% or 85.42 points to 46,584.46.

Additionally, global attention will focus on the release of the Federal Reserve’s FOMC Minutes. The document will provide deeper insight into the views of US central bank officials on economic conditions, inflation, and future policy direction.

Markets will scrutinise every detail in the minutes, particularly how the Fed assesses the impact of the energy price surge due to geopolitical conflict.

Furthermore, on the same day, markets will also monitor the Personal Consumption Expenditures (PCE) inflation data released by the Bureau of Economic Analysis. This indicator is the Fed’s primary gauge for measuring inflation pressure.

In the latest release, for January 2026, the PCE price index rose 0.3% monthly and 2.8% annually.

Meanwhile, core PCE rose 0.4% monthly and 3.1% annually. This data is important because core PCE is considered to provide a cleaner picture of underlying inflation trends in the US, making it highly watched in determining interest rate direction.

What will be announced is the February 2026 data. Market participants expect core PCE to grow around 3.0% annually, slightly lower than 3.1% in January. Nevertheless, markets will still look to see if price pressures are persisting longer amid the global energy cost surge.