IHSG Rises as Markets Await Fed Meeting and MSCI Reform

RRI.CO.ID, Jakarta - The Indonesia Stock Exchange (IDX) opened higher on Monday morning as investors adopted a cautious wait-and-see stance ahead of the US Federal Reserve’s policy meeting later this week.

The Composite Stock Price Index (IHSG) gained 16.72 points, or 0.19 percent, to open at 8,967.73, while the LQ45 index, which tracks 45 of the most liquid stocks, slipped 0.07 percent to 872.99.

Market participants are closely watching the Federal Open Market Committee (FOMC) meeting scheduled for January 27–28, with analysts widely expecting the Fed to keep its benchmark interest rate unchanged at 3.5 to 3.75 percent.

Investors are also awaiting quarterly earnings reports from major US technology companies, which are expected to provide further direction for technology stocks and the broader artificial intelligence (AI) theme.

Other global data releases in focus this week include US durable goods orders, the producer price index, euro zone economic growth figures, and China’s purchasing managers’ index (PMI).

On the domestic front, attention is focused on Morgan Stanley Capital International (MSCI), which is set to announce changes to its free-float methodology for Indonesian stocks. Public consultations on the proposed changes closed on December 31, 2025, with the results expected to be announced before January 30.

If approved, the new methodology will take effect during the MSCI index review in May 2026, potentially boosting foreign inflows into the Indonesian market.

Another key driver is the investment target set by Danantara, which aims to place up to USD 14 billion in investments this year, up from USD 8 billion in 2025. The funds are expected to come primarily from dividends of state-owned enterprises.

“The IHSG is expected to consolidate within the range of 8,850 to 9,050 before determining its next direction. If the index is able to close above 9,050, it could continue its rebound,” Ratna Lim, head of research at Phintraco Sekuritas, said in a research note on Monday, January 26, 2026, as quoted by Antara.

European stock markets closed mostly lower on Friday, January 23, 2026, with the Euro Stoxx 50 falling 0.13 percent, the UK’s FTSE 100 slipping 0.07 percent, and France’s CAC 40 declining 0.07 percent, while Germany’s DAX managed to gain 0.18 percent.

On Wall Street, US markets ended mixed, as the Dow Jones Industrial Average dropped 0.58 percent to 49,098.71, the S&P 500 edged up 0.03 percent to 6,915.61, and the Nasdaq Composite rose 0.34 percent to 25,065.47.

Asian markets on Monday morning showed mixed performance. Japan’s Nikkei fell sharply by 1,017.19 points or 1.89 percent to 52,829.69. In contrast, China’s Shanghai Composite gained 16.47 points or 0.40 percent to 4,152.64, and Hong Kong’s Hang Seng rose 114.00 points or 0.43 percent to 26,863.50.

Meanwhile, Singapore’s Strait Times slipped 9.32 points or 0.19 percent to 4,882.12. Despite the volatility in global and regional markets, the IHSG remained relatively resilient, supported by domestic policy expectations and corporate developments. ***