TEMPO.CO, Jakarta - The Indonesia Stock Exchange’s Composite Stock Price Index (IHSG) closed higher on Monday afternoon, July 28, 2025, as market participants responded positively to the trade agreement between the United States and the European Union.
The IHSG rose by 71.27 points or 0.94 percent to close at 7,614.77. Meanwhile, the LQ45 index, which tracks the top 45 stocks by liquidity and market capitalization, increased by 8.71 points or 1.10 percent to 803.22.
"The IHSG and other Asian stock exchanges showed gains, supported by the positive response to the US-EU trade agreement," stated the Pilarmas Investindo Sekuritas Research Team in their report from Jakarta on Monday.
Globally, investors welcomed the trade deal between the US and the EU, which includes a 15 percent tariff on most European goods, significantly lower than the previously threatened 30 percent. This development helped ease concerns over a potential escalation in trade tensions.
Investors are also closely watching a new round of trade negotiations between the US and China, which begins today in Stockholm, Sweden.
US Treasury Secretary Scott Bessent expressed optimism about extending the current trade truce. He noted that the talks will not only focus on tariffs but also broader issues, including China’s purchases of energy from Russia and Iran.
In addition, market players are awaiting the US Federal Reserve meeting scheduled for July 29 and 30, 2027. The Fed is widely expected to maintain the benchmark interest rate at 4.25 to 4.5 percent.
On the domestic front, the Indonesian stock market remains supported by trade tariff agreements involving the US and other countries. Investor sentiment is also lifted by the release of corporate performance reports for the first half of 2025 and anticipation of the upcoming LQ45 index rebalancing in early August.
The IHSG opened higher and stayed in positive territory throughout the first trading session. The index remained strong during the second session and closed in the green.
According to the IDX-IC Sectoral Index, ten sectors strengthened. The financial sector led with a 3.18 percent gain, followed by infrastructure at 2.51 percent and raw materials at 0.32 percent. Only one sector declined, the health sector, which edged down by 0.08 percent.
Trading activity recorded 1,605,732 transactions involving 28.81 billion shares, with a total transaction value of Rp16.94 trillion. A total of 363 stocks advanced, 244 declined, and 199 remained unchanged.
In other Asian markets, the Nikkei fell by 436.23 points or 1.05 percent to 41,020.00, while the Shanghai index rose by 4.28 points or 0.12 percent to 3,597.19. The Hang Seng dropped by 173.27 points or 0.68 percent to 25,562.31, and the Straits Times index slipped by 11.58 points or 0.27 percent to 4,249.09.
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