From the opening of the first trading session, the IHSG showed signs of weakness, already slipping into the 7,500s, a critical psychological threshold.
The index continued to weaken as the day progressed, reaching its lowest point in a month at 7.501,46. Despite a minor recovery by the end of the trading session, the IHSG failed to regain strength, ultimately settling at 7.563,26, down from Tuesday’s close at 7.642,13.
Market Sentiment Dampens
Wednesday’s market performance can be attributed to a combination of global economic uncertainty, fluctuations in commodity prices, and investor caution in the face of monetary policy decisions both domestically and abroad.
As fears around inflation and potential interest rate hikes persist, market participants have become increasingly hesitant, leading to widespread selling pressure across several sectors.
According to RTI data, the day’s trading volume reached 33.68 million shares, with a total transaction value of IDR 14.83 trillion.
However, the breadth of the market leaned heavily toward the negative, with 453 stocks declining compared to only 163 that managed to end in positive territory.
Another 186 stocks remained unchanged, reflecting the overall indecisiveness among investors amid challenging market conditions.
Top Losers: BBYB and APLN Lead the Declines
Several notable companies saw sharp declines in their stock prices, contributing significantly to the IHSG’s downward trend.
Among the hardest hit was Bank Neo Commerce (BBYB), which dropped 9.29% to IDR 254. BBYB’s poor performance can be linked to investor concerns over the bank’s digital transformation efforts, which have yet to yield the expected results.
Moreover, increased competition in Indonesia’s fintech and digital banking sector has raised doubts about the bank’s ability to capture market share in a meaningful way.
Another prominent loser was Agung Podomoro Land (APLN), one of Indonesia’s largest real estate developers, which saw its stock price tumble 8.21% to IDR 123.
APLN has faced significant headwinds due to a cooling property market, exacerbated by rising borrowing costs and slowing demand for high-end real estate projects.
The company’s declining revenues and reduced project pipelines have raised red flags for investors, leading to a sell-off in its shares.
Additionally, Pakuwon Jati (PWON), another major player in the property sector, recorded a 6.04% decrease in its stock price, closing at IDR 498.
The ongoing challenges in the property market, coupled with concerns over consumer purchasing power, have continued to weigh heavily on property developers.
Top Gainers: A Few Stocks Shine Amidst the Gloom
Despite the overall bearish sentiment, a few stocks managed to post impressive gains, providing some relief to the broader market. Inter Delta (INTD), a company involved in the photographic and imaging business, surged by 34.01%, reaching IDR 264.
This dramatic rise could be attributed to speculative buying, as the company recently announced plans to diversify its business portfolio, attracting investor interest.
Medco Energy International (MEDC) also saw an 8.95% increase, closing at IDR 1,400. The company, which focuses on oil and gas exploration, benefited from the recent uptick in global oil prices.
As energy demand continues to rebound, companies like Medco are expected to capitalize on higher commodity prices, boosting their earnings potential.
Rukun Raharja (RAJA), a leading player in Indonesia’s natural gas infrastructure sector, also recorded a solid gain of 8.87%, closing at IDR 1,350.
The company’s growth prospects have been bolstered by its recent expansion into renewable energy projects, which align with Indonesia’s national strategy to reduce its reliance on fossil fuels.
Rupiah Weakens Alongside Stock Market
The domestic currency, the rupiah, also faced downward pressure on Wednesday, weakening by 0.41% against the US dollar. The rupiah closed at IDR 15,268 per US dollar, down from the previous day’s level of IDR 15,206.
This decline reflects broader concerns over Indonesia’s economic outlook, particularly in light of potential global interest rate hikes and the US dollar’s strengthening position in the global currency markets.
According to Bloomberg data, the rupiah’s decline was also mirrored by the middle rate set by Indonesia’s central bank, Bank Indonesia (BI).
The central bank’s Jakarta Interbank Spot Dollar Rate (JISDOR) weakened to IDR 15,247 per US dollar, down from Tuesday’s level of IDR 15,204.
Regional Markets See Mixed Results
Indonesia’s stock market was not the only one experiencing volatility. Regional markets across Asia displayed mixed performances as investors reacted to global economic conditions and local market trends.
The Shanghai Composite Index remained flat, closing at 3,336.50, reflecting a cautious approach among investors amid concerns over China’s slowing economic growth.
In Japan, the Nikkei 225 took a significant hit, dropping by 2.18%, or 843.19 points, to close at 37,808. Japan’s market continues to be affected by global economic uncertainties, including potential shifts in US monetary policy and the ongoing conflict in Ukraine.
Meanwhile, the Straits Times Index (STI) in Singapore posted a modest gain of 0.25%, or 8.91 points, ending at 3,589.87, as investors welcomed positive economic data from the island nation.
In Hong Kong, the Hang Seng Index enjoyed a notable rally, climbing by 6.20%, or 1,231 points, to close at 22,443.73, driven by optimism around potential stimulus measures from the Chinese government.
Outlook: Caution Ahead
As the IHSG continues to struggle amid global economic uncertainties, market participants are likely to remain cautious in the coming days.
Investors will closely watch the release of economic data and central bank decisions, both domestically and internationally, which could impact the future direction of the market.
For now, the combination of rising interest rates, inflation concerns, and currency fluctuations suggests that volatility may persist in the near term.