The Indonesia Stock Exchange Composite Index (IHSG) continues its rally this Monday morning, opening 0.61% higher at 8,322.22 and extending last week’s record-breaking momentum. The benchmark index reached a new milestone, surpassing the 8,300 level for the first time. A total of 292 stocks rose, 66 declined, and 279 remained unchanged. Trading value reached IDR 254.23 billion, with more than 347 million shares exchanged in over 38,000 transactions. Just minutes after the market opened, the IHSG climbed further to 8,354.67, driven by large-cap blue-chip stocks leading the gains.
This upward movement reflects strong investor confidence, fueled by domestic earnings reports and favorable global sentiment. The market’s continued performance builds on last week’s all-time highs in both intraday trading and market close.
IHSG Continues Rally with Blue-Chip Support
IHSG continues its rally as blue-chip stocks dominate early trading. Banking, energy, and consumer sectors led the gains, contributing to the index’s strong start. Market breadth also remained positive, with more advancing stocks than declining ones. Investors remain optimistic about the market’s direction, anticipating sustained performance from Indonesia’s largest listed companies.
This week marks a crucial period for Indonesia’s financial markets as October draws to a close. Despite limited domestic data, market participants focus on third-quarter earnings reports, which are expected to be one of the key drivers behind the index’s strength. Analysts note that the combination of steady corporate performance and improving global sentiment could maintain the market’s momentum in the near term.
Indonesia Stock Market Rise Driven by Earnings Season
The Indonesia stock market rise is largely driven by the ongoing Q3 2025 earnings season. Investors expect strong corporate results, particularly in the banking, telecommunications, and commodities sectors. This optimism stems from stable macroeconomic conditions, including low inflation and a resilient rupiah. These factors help support investor confidence in Indonesia’s equity market.
With limited domestic economic releases this week, corporate earnings play a crucial role in shaping short-term sentiment. The third-quarter results provide key insights into business resilience amid fluctuating global conditions. As one market observer noted, earnings momentum could be the “wheel that drives the IHSG” through the remainder of the year.
Read More: Indonesian Stock Investors Reach Record 7 Million in 2025
Global Market Optimism Fuels Regional Gains
Global market optimism continues to lift regional equities, including Indonesia. Investors around the world are closely watching the U.S. Federal Reserve’s interest rate policy decision. The outcome could further boost global stock market rallies if it aligns with expectations of continued rate cuts. Several upcoming U.S. economic data releases are also expected to provide additional momentum.
Meanwhile, Asian markets opened strong on Monday. Japan’s Nikkei 225 surpassed the 50,000 level for the first time, climbing more than 2%, while the Topix rose 1.61%. South Korea’s Kospi surged 1.83%, and the smaller-cap Kosdaq increased 0.72%. In Hong Kong, Hang Seng futures traded higher at 26,256, compared with the previous close of 26,160.15. Australia’s ASX/S&P 200 also gained 0.54% in early trading.
This regional rally followed reports that U.S. and Chinese negotiators had drafted a framework to resolve several trade disputes. This move could pave the way for President Donald Trump and President Xi Jinping to sign a formal agreement. In an interview with CBS News, U.S. Treasury Secretary Scott Bessent said Trump’s proposed 100% tariffs on Chinese imports were “effectively impossible.” He added that China is expected to make significant soybean purchases and delay broad restrictions on rare earth exports. However, the U.S. will maintain its current export controls on China, Bessent noted.
Last Friday, the three major U.S. indices closed at record highs as low inflation data boosted investor optimism. The Dow Jones Industrial Average rose 472.51 points, or 1.01%, to 47,207.12, marking its first close above 47,000. The S&P 500 climbed 0.79% to 6,791.69, while the Nasdaq Composite jumped 1.15% to 23,204.87. These gains strengthened market expectations that the Federal Reserve would stay on its rate-cutting path, supporting both the U.S. and global economies.
Read More: Trump Fed Replacement Plan Sparks Market Uncertainty
Can IHSG Sustain Its Record-Breaking Momentum?
Looking ahead, analysts believe the IHSG outlook remains optimistic but cautious. The index may continue to benefit from strong earnings results and global tailwinds, yet external risks remain. Market participants will be watching the U.S. interest rate decision, global trade developments, and regional political events closely.
With both ASEAN and APEC summits taking place this week, Asia will be at the center of global attention. Positive outcomes from these meetings could further strengthen investor sentiment across the region. For now, IHSG stands firm above 8,300, reflecting Indonesia’s resilience amid global uncertainty and positioning itself for potential gains heading into November.
Source: cnbcindonesia.com
Image: pixelshot/ Canva
