RADAR TULUNGAGUNG – The IHSG drop shocked investors during the opening minutes of trading on Monday morning as Indonesia’s benchmark stock index plunged more than five percent in early market activity.

Within the first 15 minutes of the trading session, the IHSG drop pushed the composite index to the psychological level of around 7,100. At 09:15 Western Indonesia Time, the index fell 5.14 percent to 7,197.06, reflecting heavy selling pressure across nearly all sectors.

Market observers linked the sharp IHSG drop to global market turbulence, particularly weakness in major Asian stock exchanges. The decline mirrored similar corrections in the Asia-Pacific region, where investors reacted to mounting economic uncertainty.

The sudden downturn triggered widespread concern among investors and market participants who closely monitor Indonesia’s capital market performance.

Asia-Pacific Market Pressure Triggers Panic Selling

Analysts said the decline in Indonesia’s stock market largely reflected external factors rather than domestic economic issues.

Major Asian indices recorded significant losses during the same trading session. Japan’s Nikkei 225 and South Korea’s KOSPI both fell sharply, with corrections exceeding six to seven percent.

The regional downturn created panic among investors and triggered widespread sell-offs in Indonesia.

Market analysts explained that investors responded to global uncertainty, particularly concerns about inflation and economic slowdown in major economies such as the United States and China.

These fears pushed investors to reduce exposure to riskier assets, including equities in emerging markets like Indonesia.

Nearly All Sectors in the Red

Sectoral data showed that almost every industry group on the Indonesia Stock Exchange suffered significant losses during the early trading session.

The financial sector fell around 2.65 percent, deepening from earlier declines recorded during the market opening.

Consumer-related sectors also experienced steep corrections. Primary consumer stocks dropped about 4.72 percent, while non-primary consumer shares fell even deeper at approximately 6.25 percent.

Industrial stocks also weakened by roughly 4.66 percent.

Energy stocks, which typically benefit from rising global commodity prices, also failed to escape the downturn.

Despite global oil prices climbing to around 90 to 100 US dollars per barrel, the energy sector still recorded a correction of more than five percent.

Analysts said the weakness partly reflected heavy selling pressure on several large-cap conglomerate stocks that dominate the sector.

Meanwhile, the basic materials sector led the overall decline with a correction exceeding 7.18 percent, making it the worst-performing industry group during the session.

Other sectors also followed the downward trend. Infrastructure stocks dropped about 6.53 percent, property shares declined around 4.62 percent, and technology companies slipped roughly four percent.

Transportation and healthcare stocks also recorded losses of around three percent.

Commodity Stocks Show Signs of Resilience

Despite the broad market downturn, some commodity-related companies showed early signs of resilience.

Analysts noted that several oil and resource-based companies initially opened lower but gradually moved back into positive territory as trading progressed.

Rising global commodity prices could potentially support earnings growth for companies operating in sectors such as oil, coal, and palm oil.

Indonesia hosts many listed companies involved in natural resource industries, which could benefit from higher commodity prices in the coming months.

Because of this, analysts urged investors not to react purely on emotion during market volatility.

Investors Urged to Remain Rational

Market experts emphasized the importance of rational decision-making during periods of panic selling.

Rather than following short-term market sentiment, investors should evaluate company fundamentals and potential earnings growth.

Companies that benefit directly from rising commodity prices may still record stronger revenue and net profit despite broader market pressure.

Analysts therefore suggested that investors analyze each stock carefully before making investment decisions.

The current correction, they said, may also create opportunities for strategic buying.

Some investors often use market downturns as a chance to apply the buy-on-weakness strategy, targeting fundamentally strong companies whose share prices temporarily decline.

While the IHSG drop reflects heightened global uncertainty, analysts believe Indonesia’s market fundamentals remain relatively resilient.

For now, however, investors will continue watching global developments closely as external economic pressures remain the dominant factor influencing market movements.