IDX Composite Trims Early Gains After Weak Consumer Mood

Indonesia’s IDX Composite pared morning gains on Monday afternoon, hovering near 6,417 amid weak domestic fundamentals, with July’s consumer confidence slipping for a third month to a 15-month low, underscoring concerns over economic conditions and job prospects. Caution also grew ahead of June's retail sales data due Tuesday, following a notable contraction in May, reflecting elevated inflation and higher non-subsidised fuel prices. Externally, Dow futures eased ahead of key U.S. inflation data later this week, while geopolitical tensions flared as Iran pressed Washington for war-damage compensation in peace talks. On the central bank front, President Prabowo Subianto nominated acting Bank Indonesia Governor Destry Damayanti as the sole candidate. State Secretary Prasetyo Hadi confirmed the submission to parliament, a process expected to take weeks. Notable movers included ESSA Industries (7.1%), Merdeka Copper Gold (4.1%), United Tractors (2.5%), and Bumi Resources (1.6%).

Indonesian equities rose 47 points or 0.7% to 6,455 in early deals on Monday, extending last week’s momentum. Gains were broad-based across cyclicals, basic materials, energy, and financials, lifting the market to its highest level in more than two weeks. Sentiment was supported by stronger-than-expected Q2 GDP growth and a sizeable IDR 70 trillion liquidity injection into state-owned banks. Meanwhile, July’s forex reserves held steady around USD 145 billion, underscoring resilient external buffers. However, caution lingered after weak CPI and PPI readings from top trading partner China signaled fragile demand, even as easing oil shocks from the Middle East conflict tempered cost pressures. Among notable movers were Hartadinata Abadi (5.6%), Indosat (2.8%), Vale Indonesia (1.9%), and Perusahaan Gas Negara (1.0%). Traders now brace for Indonesia's July consumer sentiment after June's figures slipped to a nine-month low.

Indonesian shares rose 33 points, or 0.5%, to 6,377 in Friday morning trade, rebounding from a modest dip in the prior session amid sectoral gains led by energy, property, and infrastructure. The advance was tempered, however, by softer U.S. stock futures ahead of the July jobs report, while geopolitical risks lingered after Iran reportedly sought to restrict U.S. and Israeli vessels from transiting Hormuz and impose compensation demands on nations it deems hostile. Caution also grew ahead of July trade data in top trading partner China later today, with expectations of weaker exports and imports due to weather disruptions. Early standouts included Indosat (6.8%), Mitra Keluarga (4.7%), and Bumi Resources (2.8%). For the week, markets remain on track for a fifth straight gain, lifted by buying interest linked to governance reforms under President Prabowo’s flagship program. Meanwhile, July headline inflation hit a three-month low, reinforcing views that cost pressures are contained.