Indonesian Stocks Rise for 6th Session

Indonesian equities rose 61 points, or 0.8%, to 7,735 in Wednesday morning trade, extending gains for a sixth straight session as Wall Street's S&P 500 closed near record highs overnight on easing U.S. inflation pressures and hopes of a Middle East diplomatic breakthrough. Sentiment was also lifted by optimism that Jakarta will maintain its focus on energy security, fiscal revenue mobilization, and spending prioritization amid global uncertainties. Local markets held at five-week highs, with all sectors gaining, led by industrials, transport, and basic materials. However, rupiah depreciation added to cost pressures even as March inflation eased from February’s three-year peak. Meantime, Bank Indonesia will hold a policy meeting next week, with officials signaling limited scope for further easing after 150bp of cuts since September 2024. Early standouts included Impack Pratama Industri (5.5%), Adaro Andalan (4.6%), Trimegah Bangun Persada (3.6%), and Sinar Mas Multiarha (3.3%).

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.