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IHSG down 0.10% on rising geopolitical tension, domestic retail sales
The IHSG declined by 0.10 percent to close at 7,219.96 on Thursday. Factors like geopolitical tension and domestic retail sales contributed to the market movement.
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An employee takes a photo of a screen showing stock movements on July 4, 2023, at the Indonesian Stock Exchange (IDX) in Jakarta. The IDX composite declined by 0.10 percent to close at 7,219.96 on Jan, 11, 2024. (Antara/Hafidz Mubarak A)
The Indonesia Stock Exchange (IDX) Composite (IHSG) fell by 0.10 percent or 7.33 points to close at 7,219.96 on Thursday.
Of the listed stocks in the IDX, 249 strengthened, 267 declined and 252 traded flat. The total trading volume for the day hit 22.87 billion shares, amounting to Rp 9.23 trillion (US$592.87 million) in value.
By the end of the first session, the IHSG was in the green, increasing by 0.47 percent.
However, on Thursday morning, Ajaib Sekuritas financial expert Ratih Mustikoningsih said the market signaled a downward trend.
“Today, the IHSG is expected to show a mixed movement, with a likelihood to weaken within the range of 7,150 to 7,235,” said Ratih, as quoted by the Antara news agency.
Seven sectoral indices in the stock market gained, with transportation leading the other sectors by posting a 1.29 percent increase. The financial sector followed suit with a 0.91 percent gain, while the non-primary consumer goods sector was up 0.87 percent.
The biggest decline was recorded in the primary consumer goods sector, which fell by 0.75 percent. The raw goods sector declined by 0.56 percent while the energy sector lost 0.36 percent.
The LQ45 index, which tracks 45 top companies by market capitalization in the IDX, inched up 0.083 percent to hit 969.94 by the closing bell.
PT XL Axiata led the gainers, jumping by 6.05 percent. Meanwhile, the biggest loser for the day was PT Chandra Asri Petrochemical, which plummeted by 7.25 percent.
Several factors influenced Thursday’s market movement.
The geopolitical tension in the Middle East has affected the crude oil supply, which can lead to a sharp increase in energy prices. The conflict may potentially increase inflation in various parts of the world, forcing central banks to maintain high interest rates.
On the domestic side, Bank Indonesia (BI) reported that retail sales in November 2023 slowed compared to the month before, recording an annualized rate of 2.1 percent from 2.4 percent. However, BI estimated that retail sales in December 2023 rose by 4.8 percent month-on-month because of the holiday season.
