Indonesia’s Jakarta Composite Index (IHSG) rose 2.00% to 5,217.39 in the first session of trading on Thursday, as of 11.20 WIB. The index gained 102.35 points. Analysts attributed part of the advance to a political development: the announced resignation of Vice President Gibran Rakabuming Raka.
Political risk seen as limited
Lukman Leong, an analyst at Doo Financial Future, said political uncertainty typically makes investors more cautious. However, he said that as long as it does not directly affect government stability and economic policy, the impact on the market is likely to remain relatively limited. Maximilianus Nicodemus, Associate Director at Pilarmas Investindo Sekuritas, said the resignation issue would not have a significant impact on the IHSG if it does not disrupt the government’s agenda. Pressure on the market is likely to be temporary, he said.
Foreign flows and investor stance
Leong said foreign investors have not fully lost confidence in the Indonesian market. Foreign net selling has eased, and foreign net buying has occasionally appeared. Herditya, an analyst at MNC Sekuritas, said political conditions are not yet fully stable, so investors are expected to take a wait-and-see stance.
Trading volume in the session reached 244.97 million lots, with a value of 5.42 trillion rupiah. Energy stocks led the gains, rising 3.2 percent according to Refinitiv data. Technology shares rose 1.9 percent and industrial shares 1.4 percent. Coal prices were described as strengthening, supporting energy-sector stocks.
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