Indonesia Stocks Eye Second Straight Weekly Gain

Indonesia’s IDX Composite rose 38 points, or 0.6%, to 6,558 in early Friday trade, extending momentum from the prior session after Wall Street’s overnight strength buoyed sentiment. Investors awaited signals on the Fed’s rate path from Chair Kevin Warsh’s debut Jackson Hole speech later today. Locally, confidence was steadied by Thursday’s orderly protest in Jakarta, with no major security disruptions. At the same time, attention turned to the House of Representatives’ expected announcement on the Bank Indonesia governor candidate. Upside was tempered, however, by caution ahead of next week's August inflation data, with El Niño risks fueling concern over food prices, while July trade figures are also due. Energy, financials, and non-cyclicals led gains, with Petrindo Jaya Kreasi (4.3%), Elang Mahkota Teknologi (2.0%), Bank Central Asia (1.2%), and Sumber Alfaria Trijaya (1.1%) among standouts. For the week, the market is poised for a second straight rise, up about 0.4% so far.

Indonesian equities were little changed on Thursday morning deals, hovering around 6,412 after declines in the prior two sessions. Gains in healthcare, cyclicals, and industrials were offset by weakness in basic materials, financials, and technology. Investors kept an eye on planned protests in Jakarta later today, where demonstrators are urging parliament to pass the Asset Forfeiture Bill to bolster anti-corruption efforts. Attention also turned to upcoming domestic data next week, including August inflation and July trade figures. U.S. sentiment provided some lift as futures rallied after Nvidia’s blowout earnings, with Q2 revenue more than doubling and beating forecasts by the widest margin in two years. Alamtri Resources rose 3.4%, followed by Indika Energy (3.0%), Darma Henwa (1.9%), and Bukit Asam (1.7%). On the downside, Telkom Indonesia slipped 1.2%, along with Bank Negara Indonesia (-1.1%), Surya Citra Media (-1.0%), and Kalbe Farma (-0.6%).

Indonesian shares slipped 21 points, or 0.3%, to 6,482 in early Wednesday trade, marking the second straight session of losses as investors returned from a holiday. Sentiment was dampened by weaker U.S. equity futures ahead of Nvidia’s earnings, while Washington weighed fresh trade measures against Canada. Locally, the Indonesian bourse announced plans to cut the minimum share price limit from IDR 50 to IDR 1 by September 7, a move aimed at boosting liquidity but prompting caution among traders about potential asset impacts. Meanwhile, several key domestic data will be due next week, including August inflation and July trade performance. Still, losses were partly cushioned by strong July digital transaction volumes, with rapid adoption of QRIS payments by Bank Indonesia supporting optimism. Sectoral pressure came from transport, energy, and property, with notable laggards including Indosat (-3.4%), Medco Energi (-2.9%), Bank Rakyat Indonesia (-1.6%), and Charoen Pokphand (-1.0%).