JAKARTA - The Composite Stock Price Index (IHSG) made new history at the start of the year. At the close of trading today, the IHSG rose 0.64 percent to 8,933, making it the highest closing level ever.Even intraday, the IHSG briefly touched the 8,940 level before closing slightly lower.
The strengthening of the IHSG marks the continued positive sentiment in the Indonesian capital market since the beginning of the year.
The IHSG opened at 8,890 and briefly moved into the red zone with a low of 8,839, but rebounded to strengthen by the end of the trading session.
This achievement reinforces market participants' optimism about the national economic outlook.
Semesta Indofest Sekuritas Research Analyst Ncolas Darmawan believes that the strengthening of the IHSG is in line with improving expectations for Indonesia's economic growth following changes in fiscal and financial policies in 2025.
According to him, the beginning of 2026 will be a positive moment for the stock market.
Global Sentiment Relatively Conducive.
Ncolas explained that the strengthening of the JCI was also supported by relatively stable global market conditions.
Concerns regarding global geopolitical dynamics, including issues involving the United States and Venezuela, have so far not put significant pressure on the market.
“The global market is quite resilient. For now, there are no significant negative catalysts, so the IHSG still has the opportunity to continue its limited strengthening,” he said.
He projected that the IHSG still has the opportunity to test the psychological level of 9,000 in the near future.
Conservatively, the very short-term target for the JCI is in the range of 8,980 to 9,000.
January Effect and Domestic Consumption
According to Ncolas, the strengthening of the IHSG is also influenced by the January effect.
He believes that this year's early rally is a continuation of the weakening and sideways movement that occurred in December.
“The Santa Claus Rally can be said to have been delayed and only realized in January,” he explained.
In addition, institutional investor portfolio rotation continues. Another catalyst supporting the IHSG is the potential increase in domestic consumption ahead of the Chinese New Year and Eid al-Fitr celebrations, which are close together.
Commodity Stocks Become Main Support.
From a sectoral perspective, basic materials stocks were the main driver of the IHSG's strengthening, with an increase of 3.35 percent.
The industrial sector strengthened by 2.14 percent, followed by the energy sector, which rose by 1.62 percent.
Conversely, the transportation and logistics sector weakened by 0.89 percent. This movement indicates that sector rotation is still occurring, with investors tending to pursue commodity-based stocks.
Gold and aluminum stocks recorded significant gains in line with rising global commodity prices.
This situation has made the commodity sector the darling amid concerns over pressure on the banking sector.
Banking Still Stuck.
In the banking sector, stock movements have been mixed. BBCA shares are still recording slight gains, while BMRI has corrected quite deeply.
Ncolas believes that the market remains cautious about the banking sector due to the impact of BI's aggressive benchmark interest rate cuts in 2024.
The interest rate cuts are expected to put pressure on banks' net interest margins (NIM), especially in their fourth quarter earnings reports.
Therefore, banking stocks are expected to remain limited in the short term.
AMAN and RAJA in the Spotlight.
Aneka Tambang Mineral (AMAN) shares were among today's top gainers, rising more than 10 percent.
This increase was driven by a rebound in gold prices and the valuation of shares, which are considered attractive after prolonged pressure throughout 2025.
In addition to AMAN, Raja Ratu Adaro Mineral (RAJA) shares also jumped 16 percent.
The strengthening of these stocks was triggered by positive sentiment following the strategic acquisition of LNG and midstream assets in East Java, which have the potential to contribute to this year's financial performance.
Other Indices Move Variably
Meanwhile, the LQ45 index rose 0.61 percent following the movement of the IHSG. The Jakarta Islamic Index remained stagnant, while the MNC36 weakened slightly by 0.08 percent.
IHSG setting a new record high, market players are now waiting for the strengthening trend to continue amid sector rotation and a lack of negative global sentiment. (*)
Editor : Didin Cahya Firmansyah