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JAKARTA — Indonesia’s benchmark stock index, the Indeks Harga Saham Gabungan (IHSG), suffered a dramatic decline on Monday morning, tumbling 4.3 percent in just 90 minutes of trading.
The sharp drop has raised concerns that the market may soon trigger a trading halt, a safeguard mechanism designed to prevent further panic selling.
A Sudden Freefall
The IHSG opened at 6,628.98 but quickly slid to 6,434.28 by 10:54 WIB, marking a loss of 289 points.
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At one point, the index touched 6,425.95, underscoring the intensity of the selloff.
Trading activity remained brisk despite the downturn, with 16.18 billion shares exchanged, valued at Rp 9.54 trillion, across more than 1.4 million transactions.
Sector Wide Declines
The rout was broad-based, affecting nearly all sectors:
– Basic materials plunged almost 9 percent, the steepest drop of the day.
– Energy, industry, consumer, finance, infrastructure, and transportation each fell more than 4 percent.
Key indices also weakened:
– LQ45 dropped 3.39 percent to 635.59.
– KOMPAS100 fell 4.40 percent to 853.95.
– Islamic indices JII and ISSI also recorded losses.
Trading Halt Concerns
Under Bursa Efek Indonesia (BEI) rules, a trading halt is automatically triggered if the IHSG falls more than 5 percent in a single session.
Such a halt would temporarily suspend all transactions, giving investors time to reassess strategies amid extreme volatility.
With the index already down 4.3 percent, market participants are bracing for the possibility that the threshold could be breached.
Big-Cap Stocks Under Pressure
The selloff was led by large-cap stocks recently impacted by global index rebalancing:
– Chandra Asri Pacific (TPIA)
– Dian Swastatika Sentosa (DSSA)
– Amman Mineral Internasional (AMMN)
– Barito Renewables Energy (BREN)
These stocks, once considered market anchors, have become focal points of selling pressure.
Investor Sentiment
The breadth of decline was striking: 720 stocks fell, while only 68 managed gains. Analysts point to foreign fund outflows and index reshuffling as key drivers of volatility.
With global markets unsettled by external shocks, Indonesian equities remain vulnerable.
The selloff reflects not only domestic concerns but also broader anxieties about capital flight and liquidity risks
If losses extend beyond 5 percent, a trading halt could be imposed, pausing activity to stabilize sentiment.
Market observers warn that volatility may persist in the coming sessions, especially as investors weigh the impact of global index changes and foreign capital movements.
For now, the IHSG’s sharp decline serves as a stark reminder of the fragility of investor confidence in an increasingly interconnected financial landscape.
