Reasons for IHSG Plunge Today: Middle East Geopolitics and Inflation Risks

JAKARTA, KOMPAS.com - The Composite Stock Price Index (IHSG) closed weaker during trading on Thursday (26/3/2026). The index fell 1.89 per cent or 138.029 points to the level of 7,164.091, after moving in a downward trend throughout the day. At the opening position of 7,313.665, the IHSG briefly strengthened slightly and recorded the day’s high at 7,323.702. From a liquidity perspective, trading activity was recorded as quite high with a volume of 30.83 billion shares and a transaction value of Rp31.88 trillion, as well as a transaction frequency exceeding 1.71 million times. Pressure was also reflected in the negative market breadth, where the number of declining stocks reached 380, far more than the 292 rising stocks, while 148 stocks were stagnant. With this condition, the market capitalisation of the Indonesia Stock Exchange reached Rp12,620.998 trillion. This situation has delayed expectations of a US Federal Reserve interest rate cut, causing the US dollar to strengthen and foreign funds to tend to exit emerging markets, including Indonesia. Interestingly, amid rising oil prices, energy sector stocks experienced the deepest decline, indicating that the market is currently more fearful of inflation risks and high interest rates than the potential rise in commodity prices themselves. “This means the market is in a risk-off phase, where investors tend to reduce risky assets like stocks and shift to safe-haven assets,” said Hendra when contacted by Kompas.com.