IHSG Dips as Investors Lock in Profits Near All-Time Highs

RRI.CO.ID, Jakarta - The Indonesia Stock Exchange (IDX) saw the Composite Stock Price Index (IHSG) open in the red this Friday, January 23, 2026, as market participants engaged in profit-taking following the index's recent surge to record levels.

The benchmark index slipped by more than 1 percent in early trading, reflecting "buyer's fatigue" after a period of intense bullish momentum.

The IHSG opened down 97.47 points (1.08 percent) at 8,894.70, while the LQ45 index, which tracks the 45 most liquid stocks, dropped 0.97 percent to 866.58.

Analysts from Phintraco Sekuritas suggest that the index may continue to test support levels between 8,850 and 8,950 throughout the day as the market stabilizes.

While the local market corrected, global sentiment remained largely positive due to easing tensions between Washington and Europe.

President Donald Trump’s announcement of a "framework agreement" on Greenland and the retraction of tariff threats against NATO allies boosted Wall Street and European markets overnight.

Despite the generally positive atmosphere in global markets, investors are remaining cautious as they look ahead to several major central bank events scheduled for next week.

Market participants widely expect the US Federal Reserve to maintain its current stance, with the FOMC projected to hold interest rates steady within the 3.50 to 3.75 percent range.

Meanwhile, the Bank of Japan (BoJ) is also expected to keep its rates at 0.75 percent, particularly as the latest data indicates that Japanese inflation is beginning to cool, slowing to an estimated 2.7 percent (yoy).

These upcoming decisions are seen as critical factors that will determine market liquidity and investor appetite for risk in the final week of the month.

On the home front, the market is awaiting the release of Indonesia's M2 Money Supply data for December 2025. This data will provide a clearer picture of liquidity in the economy and help investors gauge the potential for further growth or inflationary pressure in the first quarter of 2026.

Despite the morning dip, regional Asian markets showed mixed results, with the Nikkei and Straits Times Index posting gains, suggesting that the current IHSG weakness is primarily a technical correction rather than a shift in long-term sentiment. ***