The Indonesia Composite Index (IHSG) is expected to see a modest correction on Monday, June 16, 2025, at the Indonesia Stock Exchange in Jakarta amid mounting tensions in the Iran-Israel conflict. This escalation has heightened fears of a disruption in the global oil supply, exerting downward pressure on market sentiment.
The conflict intensified following an Iranian missile strike targeting military installations in Israel over the past weekend, which Israel responded to with retaliatory airstrikes. Concurrently, Brent crude oil prices surged past $74 per barrel, amplifying concerns within the energy sector and adding strain to the IHSG.
According to analysts at Okezone.com, the IHSG is poised for a limited downturn, with key support levels identified between 7,100 and 7,150 points. This external pressure compounds weaknesses experienced after the IHSG hovered around the 7,200 to 7,250-point range in the previous week. Nevertheless, opportunities for a rebound remain if tensions in the Middle East show signs of de-escalation.
A retail investor in Jakarta noted that clarity on progress toward a ceasefire negotiation would serve as a positive catalyst, potentially restoring foreign capital inflows into the Indonesian stock market. By the close of trading last Friday, the IHSG stood at 7,217.45 points, reflecting a 0.07 percent decline compared to the previous day.
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