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The IHSG Closed Lower As The Market Observes Tensions In The Middle East

The Composite Stock Price Index (IHSG) of the Indonesia Stock Exchange (BEI) closed lower on Thursday afternoon as market participants are closely monitoring the escalating geopolitical conflict in the Middle East.

The IHSG closed down by 139.15 points or 1.96 percent, reaching a level of 6,968.64. Meanwhile, the LQ45 index, which comprises 45 leading stocks, fell by 17.95 points or 2.26 percent to a position of 774.81.

"The IHSG and regional Asian markets are experiencing declines as market participants are unsettled by the intensifying conflict between Israel and Iran," stated Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas in Jakarta on Thursday.

The United States (US) is reportedly preparing for a potential strike against Iran, which heightens concerns regarding broader regional instability and deeper US involvement.

This situation arises as the US considers the possibility of direct conflict with Iran. Senior US officials are preparing for a potential attack on Iran in the coming days.

Previously, U.S. President Donald Trump held a meeting with the National Security Council to discuss the conflict between Iran and Israel, while considering the possibility of involvement in Israel's military strike against Iran.

This situation has the potential to heighten international tensions and escalate a conflict that could result in significant losses, as well as impact regional stability and the diplomatic relations of the U.S. with other nations.

On another note, The Fed, in its meeting, maintained interest rates at a steady level of 4.25-4.50 percent. The market assessed this decision after careful consideration amidst concerns regarding the inflationary effects of tariffs imposed by U.S. President Donald Trump.

Fed Chair Jerome Powell warned of significant inflation ahead, indicating that the increase in trade tariffs is likely to raise prices and adding that the impact on inflation could be more persistent. Consequently, the uncertainty caused by tariffs complicates the central bank's efforts to ease policy.

Opening lower, the IDX remained in negative territory until the close of the first trading session. In the second session, the IDX continued to linger in the red zone until the end of trading.

According to the IDX-IC Sector Index, eleven or all sectors have weakened, with the most significant decline observed in the raw materials sector, which decreased by 3.98 percent, followed by the transportation & logistics sector and the energy sector, which fell by 3.58 percent and 1.74 percent, respectively.

The stocks that experienced the largest gains include CSIS, LABA, NZIA, PTMR, and BALI. Conversely, the stocks that faced the most significant declines are OBAT, CBUT, MBSS, IOTF, and KOPI.

The frequency of stock trading recorded a total of 1,453,227 transactions, with 24.90 billion shares traded, amounting to Rp13.96 trillion. A total of 92 stocks increased, 571 stocks decreased, and 139 stocks remained unchanged.

This afternoon, the Asian stock exchanges show that the Nikkei index rose by 256.17 points or 0.67 percent to 38,567.50, the Hang Seng index fell by 80.69 points or 0.53 percent to 23,980.48, the Shanghai index increased by 1.32 points or 0.04 percent to 3,387.78, and the Strait Times index declined by 22.18 points or 0.57 percent to 3,930.64.

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Tag: BEI Iddle East IHSG Indonesia Stock Exchange