The Jakarta Composite Index (IHSG) experienced a notable slump during Monday’s trading session, specifically at 2:28 PM WIB (Western Indonesian Time) on January 12th. The benchmark index plunged by 207.052 points, representing a 2.32 percent drop, settling at a low of 8,729.702.
Despite this initial sharp decline, the IHSG began to show signs of a rebound. However, according to RTI data as of 3:10 PM WIB, the index remained in negative territory, still down by 50.510 points or 0.57 percent, trading at 8,886.244.
Shedding light on the stock market’s downturn, Herditya Wicaksana, an analyst at MNC Sekuritas, attributed the significant dip in the IHSG primarily to widespread profit-taking activities by issuers within the energy sector.
“We observed that this IHSG correction was heavily influenced by energy-related issuers, which had seen a correction of approximately 2 percent,” Wicaksana told Kumparan on Monday (January 12th). He further elaborated, “We anticipate this was likely due to profit-taking after several energy sector stocks experienced significant gains.”
Despite the prevailing negative sentiment, Wicaksana also projected that the IHSG has the potential to stage a further rebound, even if it might conclude the day still within negative territory.
Reinforcing this perspective, Nafan Aji, Senior Market Analyst at Mirae Asset Sekuritas Indonesia, echoed the sentiment, noting the presence of profit-taking in energy stocks as a key factor. He stated, “The occurrence of profit-taking in energy shares served as a clear indicator and contributed significantly to the IHSG’s correction.”
Beyond domestic market dynamics, external sentiment, particularly evolving geopolitical factors, was also cited as a significant contributor to the IHSG’s weakening performance. Nafan elaborated on this, explaining, “In my assessment, this relates to shifting geopolitical dynamics. Previously, the focus was on the Latin American region, and now it has transitioned to the Middle East.”
Throughout the day’s trading, the IHSG experienced considerable volatility, reaching an intraday high of 9,000.967 points before touching a low of 8,715.411 points.
By market close, the total transaction value stood at an impressive Rp 34.023 trillion, with a substantial trading volume of 64.316 billion shares exchanging hands.
The frequency of transactions reached 4,438,681 instances. A detailed breakdown of stock performance revealed that 282 stocks advanced, 439 declined, and 90 remained stagnant. Concluding the trading day, the total market capitalization of the Indonesia Stock Exchange reached Rp 16,159.106 trillion.
Summary
The Jakarta Composite Index (IHSG) experienced a significant slump, plunging 2.32 percent to 8,729.702 on January 12th, before showing signs of a rebound though remaining negative. Analysts primarily attributed this notable decline to widespread profit-taking activities by issuers in the energy sector. Herditya Wicaksana of MNC Sekuritas observed that energy-related issuers had corrected approximately 2 percent following previous significant gains.
Nafan Aji from Mirae Asset Sekuritas Indonesia reinforced the view on profit-taking in energy stocks and also cited evolving geopolitical factors, particularly a shift in focus to the Middle East, as contributing to the IHSG’s weakening. Despite the negative sentiment, analysts projected the potential for a further rebound in the index. The day closed with considerable volatility, a total transaction value of Rp 34.023 trillion, and 439 stocks declining.