Antara News·Indonesia·Tuesday, October 20, 2026 at 08:27 AM UTC

IHSG stock index rebounds 4 percent on buybacks, policy steps: Analyst

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Heriyanto, Kenzu

Jakarta (ANTARA) - Analyst Helmy Kristanto of BRI Danareksa Sekuritas said several factors drove Indonesia’s Composite Stock Price Index (IHSG) up 4.16 percent to 5,204.63 at the close of Tuesday’s first trading session.

The factors included share buyback plans by several listed companies and policy initiatives by the Indonesia Stock Exchange (IDX) in response to an evaluation by Morgan Stanley Capital International (MSCI).

“Resistance is at 5,318–5,400. This range is the rebound target and the initial test of the strength of the recovery,” Kristanto said in an analysis released on Tuesday.

He outlined several factors behind the IHSG’s gains. First, several listed companies have prepared funds for share buybacks, which could help support demand for stocks amid market volatility.

Second, the IDX plans to expand the disclosure of shareholder affiliations for investors holding more than 1 percent of a company’s shares and exclude stocks classified as having High Shareholding Concentration (HSC) from the IHSG calculation.

“Implementation of this policy is in focus as part of efforts to restore investor confidence,” Kristanto said.

Third, state investment agency Danantara’s initiative to increase its shareholdings in state-owned enterprises (SOEs) supported optimism toward state-owned bank stocks, also contributing to the IHSG’s gains, he said.

Fourth, the commitment of the Financial Services Authority (OJK) and the government to reform market oversight, enforce rules against suspected coordinated trading and improve transparency provided a positive catalyst.

“However, the market is still waiting for evidence of consistent implementation amid MSCI’s consultation on the reclassification of Indonesia,” Kristanto said.

Data at the close of Tuesday’s first trading session showed that the IHSG had gained 208.02 points, or 4.16 percent, to 5,204.63. The LQ45 index, which tracks 45 leading stocks, rose 31.27 points, or 6.40 percent, to 519.73.

Trading frequency reached 1.63 million transactions, with 39.30 billion shares changing hands at a total value of Rp17.13 trillion. A total of 654 stocks rose, 137 fell and 172 remained unchanged.

Based on the IDX Industrial Classification (IDX-IC), all 11 sectoral indices strengthened. The transportation and logistics sector led the gains, rising 6.49 percent, followed by the raw materials and property sectors, which climbed 4.63 percent and 4.55 percent, respectively.

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