IHSG Slips in Session I as Foreign Outflow Continues to Weigh on Market Sentiment

The Indonesian stock market faced another challenging day as the Jakarta Composite Index (IHSG) struggled to find its footing during the first trading session on Tuesday (28/7). By the midday break, the index had slipped by 0.04%, shedding 2.63 points to settle at 6,183.16. This downward movement marks a troubling five-day losing streak, signaling a period of prolonged caution among investors.

Transaction Volume Sees a Sharp Decline

One of the most striking observations from Tuesday's morning session was the significant drop in market liquidity. The total transaction value reached only Rp5.23 trillion—a stark contrast to the previous day's robust activity. On Monday (27/7), the market recorded a massive Rp12.15 trillion in transactions. This reduction of more than half suggests that many traders are choosing to stay on the sidelines, perhaps waiting for clearer economic signals before committing fresh capital.

Despite the index being in the red, the market breadth showed a surprisingly mixed picture. Data revealed that 332 stocks actually managed to gain value, while 255 stocks declined and 208 remained stagnant. However, the heavy weight of certain declining sectors dragged the overall index down.

Sectoral Performance and Property Woes

The sectoral heat map shows that the pain is not distributed equally. Six out of the eleven sectoral indices recorded losses. The property sector took the hardest hit, plunging by 1.60% during the first session. This sharp decline in property stocks acted as a major anchor on the IHSG, offsetting gains made in other areas.

In terms of individual stock activity, two giants dominated the trading floor. PT Chandra Asri Pacific Tbk (TPIA) saw the highest transaction value at Rp291 billion, with its share price managing a modest gain of 0.96%. Following closely was PT Bank Central Asia Tbk (BBCA), recording transactions worth Rp288.48 billion. Unfortunately for the banking giant, BBCA’s share price fell by 0.40%, reflecting the broader cautious sentiment toward blue-chip stocks.

Foreign Investors Continue to Exit

A major contributing factor to the current market pressure is the persistent exit of foreign capital. In the first session alone, foreign investors recorded a net sell of Rp228.1 billion. This isn't just a one-off event; it marks the fourth consecutive day that foreign net selling has dominated the market. When international institutional investors pull back, it often creates a ripple effect that dampens local sentiment.

Regional Context: A Tough Day for Asia-Pacific

Indonesia is not alone in its struggles. The broader emerging markets in the Asia-Pacific region are also navigating turbulent waters. Most regional indices leaned toward the negative zone on Tuesday. South Korea’s KOSPI was the worst performer among its peers, suffering a massive drop of 10.21% according to Bloomberg data.

Elsewhere, Taiwan's TWSE saw a significant decline of 4.15%, while Thailand's SET index fell by 1.21%. The Hang Seng in Hong Kong showed more resilience but still dipped into negative territory with a 0.19% loss. This regional trend suggests that the current volatility is part of a larger macroeconomic shift affecting the entire Asia-Pacific corridor, leaving the IHSG vulnerable to external pressures as the second session begins.