Indonesian Market Rallies to 5-Week High on Broad Gains

Indonesian stocks climbed 119 points, or 1.6%, to 7,617 in early Tuesday trade, extending gains for a fifth straight session to a five-week high. Sentiment was buoyed by an overnight rally on Wall Street’s S&P 500 and Nasdaq, as Washington signaled continued engagement with Tehran despite blocking Iran’s ports after peace talks collapsed. Traders welcomed the government’s emphasis on energy security, including partnerships with Russia and EV development, aimed at reducing reliance on volatile markets. However, strength was tempered by caution ahead of March trade data in top trading partner China and persistent domestic inflationary pressures, particularly from rising fuel costs. Meanwhile, the rupiah’s depreciation added concern for import-reliant sectors. All sectors advanced, led by industrials, basic materials, and infrastructure. Standout performers included Petrosea (9.6%), Darma Henwa (6.7%), Bumi Resources (4.1%), Bank Central Asia (3.0%), and Bank Rakyat Indonesia (2.7%).

Indonesian shares rose 59 points, or 0.7%, to 7,513 in Monday’s afternoon trade, reversing early losses and extending gains for a fourth straight session. The IDX Composite approached a one-month high as sentiment improved after February retail sales saw their strongest growth in near two years, driven by robust household spending during Ramadan and the festive season. Optimism over fiscal discipline also supported the upturn, with revenue mobilization and spending prioritization expected to keep the stance manageable. Meanwhile, the 15% free-float regulation officially took effect on March 31, up from 7.5%, with companies under an IDR 5 trillion market capitalization required to comply by March 2029. Energy, cyclicals, and basic materials drove the gains, with top performers including MD Entertainment (18%), Barito Pacific (16.4%), Energi Mega Persada (12.6%), and Medco Energi (5.8%). Traders now await the March trade data from China, the main trading partner, scheduled for Tuesday.

Indonesia’s IDX Composite slipped 53 points, or 0.6%, to 7,406 on Monday morning, snapping a three-session gain as U.S. futures tumbled. Sentiment soured after President Trump said the U.S. Navy would blockade the Strait of Hormuz following a breakdown in talks with Iran, threatening a fragile two-week ceasefire. Locally, the rupiah lingered around a record low of 17,100 last week amid persistent capital outflows, as March forex reserves fell to USD 148.2 billion, the lowest since July 2024. Investors also turned cautious ahead of February retail sales data due later today, following resilient household demand in January. Losses were partly cushioned by optimism over Indonesia’s fiscal discipline, with revenue mobilization and spending prioritization expected to keep the stance manageable. Financials, infrastructure, and healthcare led losses, with notable laggards including Sumber Global Energy (-2.6%), Astra Intl. (-2.0%), Bank Tabungan Negara (-1.9%), and XL Smart Telecom (-1.6%).