Executive Summary

Key insights and market outlook

The Indonesian Composite Stock Price Index (IHSG) experienced a significant 2% drop during Monday's trading session, reaching a low of 8,715.41 ¹

². The decline was primarily driven by profit-taking in conglomerate stocks and concerns over the widening budget deficit ⁴. Despite recovering somewhat, IHSG closed at 8,884.72, down 0.58% ³. Analysts predict limited rebound potential on Tuesday due to ongoing global geopolitical tensions and domestic economic concerns ⁶.

Full Analysis

02

Deep Dive Analysis

Indonesian Stock Market Experiences Significant Decline

Sharp 2% Drop in Monday Trading

The Indonesian Composite Stock Price Index (IHSG) witnessed a substantial 2% decline during Monday's trading session, hitting an intraday low of 8,715.41 ¹

². Although it managed to recover somewhat, the index ultimately closed at 8,884.72, representing a 0.58% decrease from the previous day ³.

Factors Contributing to the Decline

The sharp drop was primarily attributed to profit-taking activities in conglomerate stocks, which had previously driven the index's growth ⁴

. Additional downward pressure came from concerns regarding the widening budget deficit, which approached 3% of GDP ⁶. The Indonesian rupiah's depreciation against the US dollar, reaching approximately Rp16,833 per dollar, further contributed to the negative sentiment ⁶.

Global Economic Influences

Global geopolitical tensions also played a significant role in the market's decline. The escalation of military tensions in regions such as Venezuela and Iran led to increased global market volatility ⁶

. Statements from former US President Donald Trump regarding potential military action against Iran added to investor apprehensions about possible disruptions to global energy supplies.

Analyst Predictions for Tuesday's Trading

Analysts from various securities firms have expressed cautious outlooks for Tuesday's trading session. While some anticipate a limited rebound, others warn that the current global and domestic economic concerns may continue to weigh on the market ⁶

. HSBC Global Research has projected that the IHSG could reach 9,700 by the end of 2026, driven by potential improvements in price-to-earnings ratios ⁵.

References