The Composite Stock Price Index (IHSG) of the Indonesia Stock Exchange opened up 22.32 points or 0.24 percent to 9,156.19 on Tuesday (January 20, 2026), despite weakness in Asian and global stock markets. Market observers warn of potential correction due to high valuations following yesterday's all-time high. Investors await the Bank Indonesia Board of Governors Meeting, expected to hold the benchmark interest rate steady.
On the opening of trading Tuesday (January 20, 2026), the IHSG rose 22.32 points or 0.24 percent to 9,156.19, while the LQ45 index fell 1.37 points or 0.15 percent to 891.75. This gain occurred amid weakness in European and Asian stock markets on Monday (January 19), triggered by geopolitical tensions after US President Donald Trump threatened additional tariffs on eight European countries over the Greenland issue. European leaders called the threat 'completely wrong' and 'unacceptable'.
European markets closed lower, with the Euro Stoxx 50 down 1.77 percent, FTSE 100 weakening 0.39 percent, DAX down 1.34 percent, and CAC weakening 1.78 percent. US markets were closed for Martin Luther King Jr. Day, following nearly flat closes last Friday: Dow Jones down 0.17 percent, S&P 500 weakening 0.06 percent, and Nasdaq down 0.06 percent.
In Asia, morning trading was mostly subdued: Nikkei 225 down 1.02 percent to 53,042.50, Shanghai Composite down 0.51 percent to 4,093.14, Hang Seng weakening 0.52 percent to 26,436.50, and Straits Times down 0.14 percent to 4,827.96. However, South Korea's Kospi rose 1.32 percent.
Market observer Reydi Octa stated, 'From a macro perspective, the market still shows a positive response to prospects of global monetary policy easing, amid relatively stable domestic policies and solid performance of large-cap issuers.' The rise was supported by foreign fund inflows into major banking stocks and conglomerates. However, Reydi warned, 'Since the IHSG is in ATH zone, it is vulnerable to correction due to increasingly high market valuations.'
Head of Retail Research at PT BNI Sekuritas, Fanny Suherman, predicted the IHSG could continue rising if it holds above 9,100, with support at 9,040-9,100 and resistance at 9,170-9,200. Binaartha Sekuritas analyst Ivan Rosanova noted the IHSG is prone to short-term correction after Monday's ATH of 9,133, with supports from 8,924 to 8,599 and resistances from 9,169 to 9,335.
Investors are also monitoring the Bank Indonesia Board of Governors Meeting on January 20-21, expected to maintain the BI-Rate at 4.75 percent amid rupiah weakening. Attention is also on China's economic data, such as Q4 2025 GDP.
