Energy and Banking Stocks Surge as Indonesia’s IHSG Hits 7,040 on Foreign Inflows and Eased US-China Tensions
Main Takeaways
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JAKARTA, investortrust.id – Indonesia’s benchmark stock index rebounded strongly past the psychological 7,000 level, with the Jakarta Composite Index (IHSG) closing at 7,040.16 on Thursday, up 60.28 points or 0.86%. The gain extended a two-day rally of 3.04%, marking the index’s highest close since February 5.
Market analysts attributed the rise to easing tensions in US-China trade relations, a surge in energy prices, and strong foreign investor appetite for blue-chip banking stocks, particularly state-owned lenders.
Energy, Banking Stocks Lead the Rally
Founder of Stocknow.id and capital market analyst Hendra Wardana said investors reacted positively to the de-escalation of the US-China tariff standoff, which restored confidence in global supply chains and reduced geopolitical risk premiums on emerging market assets.
“Energy stocks like PT Ratu Prabu Energi Tbk (RATU), PT Petrindo Jaya Kreasi Tbk (CUAN), PT Energi Mega Persada Tbk (ENRG), PT Bumi Resources Tbk (BUMI), and PT Indika Energy Tbk (INDY) rose significantly on expectations of rising global energy demand and commodity prices,” Hendra told Investortrust.id.
He added that technical rebounds also supported buying momentum in these previously lagging stocks, especially as institutional investors started reallocating funds to the energy sector.
The banking sector was another major driver. Foreign investors recorded a net buy of nearly Rp 4 trillion ($250 million) in the sector over two days, focusing on big names like PT Bank Rakyat Indonesia Tbk (BBRI), PT Bank Mandiri Tbk (BMRI), and PT Bank Central Asia Tbk (BBCA).
“This signals confidence in the resilience of Indonesia’s financial system, as well as optimism for credit growth amid stabilizing global conditions,” Hendra said.
Danantara's Quiet Influence Behind the Rally
University of Indonesia professor and capital market observer Budi Frensidy added that the state’s sovereign wealth fund, Danantara, played a significant role behind the scenes. According to him, a portion of the fund’s recent investments has flowed into major banking stocks, helping push the index up more sharply than global sentiment alone would suggest.
“Without Danantara’s intervention, the IHSG wouldn’t have surged this much in just two days,” Budi said. “The fund’s presence has bolstered investor sentiment toward big-cap state-owned banks.”
On Thursday, BBRI rose 4.40%, BMRI jumped 5.45%, and BBNI advanced 2.97%, with BBRI alone attracting Rp 912.82 billion ($57 million) in foreign net buy—more than half of the day’s total.
Technical Overbought, but Momentum Remains
Oktavianus Audi, VP of Marketing, Strategy & Planning at Kiwoom Sekuritas, said the index has entered overbought territory, suggesting room for short-term correction. He identified near-term resistance at 7,125 and support at 6,900.
“The market’s optimism stems not only from geopolitics but also from domestic demand for energy and revaluation of the banking sector,” Audi said. “While profit-taking may occur, corrections above 6,900 remain healthy.”
The energy sector gained 1.20% while the financial sector added 1.13% on Thursday. Infrastructure and property sectors also posted gains of over 1%.
Stocks to Watch
Hendra recommended several stocks for short-term trading strategies, including BBRI for its strong fundamentals and robust foreign inflow, CMRY on its solid Q1 performance and domestic consumption prospects, BUMI for its restructuring effort and technical momentum, and JPFA, for table feed prices and potential recovery in poultry prices.
On the speculative end, PT Sunson Textile Manufacture Tbk (SSTM), PT Wahana Pronatural Tbk (WAPO), PT Hotel Fitra International Tbk (FITT), and PT Jaya Trishindo Tbk (HELI) all hit upper trading limits (ARA), soaring between 24% and 35%. Other gainers included STRK (+30%) and AKSI (+21%).
However, some large caps such as PT Astra International Tbk (ASII) and PGAS faced net selling pressure from foreign investors, suggesting a reallocation of capital toward high-beta and undervalued sectors.