Indonesia Shares Gain as Wall Street, China GDP Lift Sentiment

Indonesia’s IDX Composite rose 46 points, or 0.6%, to 7,670 on Thursday morning, rebounding from the prior session’s weakness as U.S. futures strengthened after Wall Street’s overnight rally. Sentiment improved on news that White House-led talks with Iran were “ongoing and productive”. Meanwhile, China’s solid Q1 GDP figures reassured investors that Beijing has so far absorbed the Iran war shock with limited disruption due to ample oil reserves and mitigation efforts. Bank Indonesia also bolstered confidence, with Governor Perry Warjiyo emphasizing policy stability during investor meetings in New York and Boston. Separately, the government highlighted endorsements of Indonesia’s resilience from the Asian Development Bank and FTSE Russell. All major sectors were in the green, led by healthcare, transport, and cyclicals. Notable gainers included Aneka Tambang (2.0%), Telkom Indonesia (1.8%), Indofood Sukses Makmur (1.5%), and Indah Kiat (1.0%).

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%).