IHSG Gains on Stable Rate Expectations, Softer US Inflation
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- The IHSG opened higher as investors waited for Bank Indonesia’s Feb. 18–19 policy decision, with the BI Rate expected to stay at 4.75%.
- Softer-than-expected US inflation boosted global sentiment and reinforced expectations for further Fed rate cuts, ahead of FOMC minutes.
- European and US stocks closed higher, while parts of Asia were quieter due to Lunar New Year holidays; Japan’s Nikkei led gains.
Indonesia’s benchmark stock index, the Jakarta Composite Index (IHSG), moved higher on Wednesday morning as investors adopted a wait-and-see stance ahead of Bank Indonesia’s upcoming policy decision.
The IHSG opened up 23.54 points, or 0.29%, at 8,235.81. The LQ45 index of blue-chip stocks also rose, gaining 1.87 points, or 0.23%, to 831.54.
“The IHSG is expected to stay positive today within the 8,150–8,300 range,” Ratih Mustikoningsih, a financial expert at Ajaib Sekuritas, said in a market note in Jakarta on Wednesday.
On the domestic front, market participants this week are watching the outcome of Bank Indonesia’s Board of Governors Meeting (RDG) scheduled for Feb. 18–19, 2026. Consensus expects the BI Rate to remain unchanged at 4.75%, a move widely seen as aimed at supporting the rupiah.
From abroad, investors welcomed fresh signs that US inflation is easing, even though it remains above the Federal Reserve’s target. The softer print helped lift risk sentiment across markets.
US consumer inflation, as measured by the CPI, came in at 2.4% year-on-year in January 2026, down from 2.7% previously and below the market expectation of 2.5%.
The inflation data strengthened expectations that the Fed can continue cutting rates, with markets also looking ahead this week to the release of minutes from the Federal Open Market Committee (FOMC) meeting.
In Tuesday’s session (Feb. 17), European markets closed broadly higher, with the Euro Stoxx 50 up 0.78%, the UK’s FTSE 100 adding 0.79%, Germany’s DAX gaining 0.80%, and France’s CAC 40 rising 0.54%.
Wall Street also ended in positive territory on Tuesday (Feb. 17). The Dow Jones Industrial Average inched up 0.07% to 49,533.19, the S&P 500 rose 0.10% to 6,843.22, and the Nasdaq Composite gained 0.14% to 22,578.38.
In Asia on Wednesday morning, regional markets were mixed, with Japan’s Nikkei jumping 651.40 points, or 1.15%, to 57,217.90.
Meanwhile, China’s Shanghai index, Hong Kong’s Hang Seng, and Singapore’s Straits Times were closed for the Lunar New Year holiday (Year 2577 Kongzili).
Indonesianpost.com | Antara
