IHSG Falls to 6,907 as Iran-Israel Tensions Shake Investor Confidence

TEMPO.CO, Jakarta - The Indonesia Composite Stock Price Index (IHSG) weakened in afternoon trading on Friday, reflecting mounting concerns over escalating geopolitical tensions in the Middle East.

The IHSG ended the session down by 61.50 points or 0.88 percent at 6,907.14. Meanwhile, the LQ45 index, which tracks 45 leading stocks, dropped 9.88 points or 1.28 percent to 764.93.

"Concerns over the impact of economic uncertainty and the increasing intensity of geopolitical tensions remain negative sentiments," said Ratna Lim, an analyst at Phintraco Sekuritas, in Jakarta on Friday, June 20, 2025.

On a global scale, fears that the United States may become involved in the Iran-Israel conflict have weighed heavily on investor sentiment throughout the week.

However, those concerns slightly abated after U.S. President Donald Trump said he would delay making a decision on intervening in the war for two weeks. During that period, Trump plans to focus on tariff negotiations and hopes to bring Iran back to the negotiating table.

In Asia, the People's Bank of China (PBoC) held its benchmark interest rates steady at 3 percent for the 1-year Loan Prime Rate and 3.5 percent for the 5-year rate. The move aligns with the cautious stances of the US Federal Reserve and the Bank of England in navigating ongoing economic and geopolitical volatility.

The IHSG opened lower and stayed in negative territory throughout the first trading session, extending its losses into the market close.

According to the IDX-IC Sectoral Index, only two sectors posted gains. The transportation and logistics sector rose 1.48 percent, followed by a 0.20 percent gain in the technology sector.

In contrast, nine sectors declined. The raw materials sector recorded the steepest drop at 0.98 percent, followed by infrastructure at 0.88 percent and energy at 0.79 percent.

Top gainers of the day included SSTM, PTMR, AGAR, APEX, and FOLK. Meanwhile, the biggest losers were MBSS, JATI, OBAT, IOTF, and FILM.

Trading activity saw 1,197,173 transactions with a volume of 35.49 billion shares and a total turnover of Rp22.69 trillion. A total of 231 stocks gained, 386 declined, and 190 remained unchanged.

Regionally, the Asian stock market showed mixed movements. Japan’s Nikkei index dropped 80.84 points or 0.21 percent to 38,407.50, while Hong Kong’s Hang Seng index climbed 292.74 points or 1.26 percent to 23,530.48. The Shanghai index edged down by 2.21 points or 0.07 percent to 3,359.78, and the Singapore Straits Times index fell 10.75 points or 0.28 percent to 3,883.64.

Editor's Choice: Limited War Coverage: How Israel Censors Media Amid Iran Attacks

Click here to get the latest news updates from Tempo on Google News

Satellite Images Show USS Nimitz Moving from South China Sea to Persian Gulf

36 menit lalu

4 Key Iranian Energy Infrastructures Hit by Israeli Attacks

1 jam lalu

Global March to Gaza: Four Key Demands for Palestinian Solidarity

2 jam lalu

Limited War Coverage: How Israel Censors Media Amid Iran Attacks

3 jam lalu

Gov't Begins Evacuation of 115 Indonesians from Iran Today, More to Follow

3 jam lalu

Iranians Urged to Delete WhatsApp Over Fear of Data Sharing with Israel

5 jam lalu

Israeli Defense Minister Threatens Khamenei After Iran Missile Hits Hospital

8 jam lalu

Indonesia Advises Against Traveling to 5 Middle East Countries Amid Tensions

11 jam lalu

Donald Trump Sets Two-Week Deadline for Decision on Iran Strikes

11 jam lalu

Indonesia Joins 23 Nations in Condemning Israeli Strikes on Iran

19 jam lalu