The Indonesia Composite Stock Price Index (IHSG) declined by 4.55% during the trading week of June 22–26, 2026. The downturn was primarily driven by weakness in global equity markets and corrections in commodity-related stocks, both of which weighed heavily on the benchmark index throughout the week.

Indonesia Stock Exchange (IDX) Corporate Secretary Kautsar Primadi Ahmad stated that the IHSG closed the week at 5,896.134, representing a 4.55% decline from the previous week's closing level of 6,177.139. According to IDX data, the basic materials sector posted the steepest decline at 4.99%, followed by the non-cyclical consumer sector, which fell 2.96%, while the energy sector lost 2.61%.

Phintraco Sekuritas attributed the weekly decline in the IHSG to several negative market catalysts. During Friday's trading session (June 26, 2026), the index came under pressure mainly because Asian and European equity markets weakened amid broad-based selling in technology stocks.

In its research report, Phintraco explained that concerns over rising artificial intelligence (AI) infrastructure costs triggered selling in technology shares. The resulting weakness also pushed down metal commodity prices, which subsequently dragged related mining and commodity stocks lower.

From a technical perspective, Phintraco noted that the IHSG is currently trading below its MA5, MA10, and MA20 moving averages. Combined with a weakening MACD histogram and a Stochastic RSI entering the pivot area, the index is considered likely to test the 5,700–5,800 range during next week's trading.

Meanwhile, Pilarmas Investindo Sekuritas observed that selling pressure continued to dominate the market at the end of the week, extending the IHSG's weekly decline.

According to its research, the IHSG fell 4.55% over the week. The financial sector was the only sector to post a modest gain of 0.03%, whereas the basic materials sector recorded the sharpest decline at approximately 5%.

Pilarmas believes that weakness in the basic materials sector was the primary drag on the benchmark index, while the limited gains recorded by banking stocks were insufficient to offset selling pressure across other sectors.

Looking ahead, market participants are expected to closely monitor several domestic economic indicators, including the Manufacturing PMI, trade balance figures, and inflation data, all of which could serve as important catalysts for the IHSG's next directional move.

In global markets, the S&P 500 finished its latest trading session in the United States little changed, although investors continued to monitor major semiconductor manufacturers. Bloomberg News reported that most stocks advanced as signs of economic resilience fueled expectations that U.S. corporations would continue to perform well.

At the same time, semiconductor companies attracted attention following share buyback activity after a strong rally that has positioned the sector to deliver its best quarterly performance on record. Meanwhile, global oil prices moved lower.

Mark Hackett of Nationwide said investor sentiment has become increasingly cautious amid heavy selling in technology stocks and a sharp sector rotation. Nevertheless, he believes the broader market tells a different story.

According to Hackett, current market conditions appear to represent a period of consolidation rather than the beginning of a major market downturn.

He added that overall market fundamentals remain supportive, with consumers continuing to spend, businesses maintaining investment activity, and corporate earnings expectations still improving. Although volatility in technology stocks may create uncertainty, he noted that similar periods have often laid the groundwork for the next phase of a bull market.

The significant price swings experienced by technology stocks over recent days have also highlighted how rapidly optimism surrounding artificial intelligence (AI) can shift into concerns over elevated valuations.

Although the prevailing market view remains that the long-term AI investment theme is still intact, expectations of uninterrupted and steadily rising prices appear to be fading as market participants become increasingly cautious.