Indonesian Stocks Ease Slightly

Indonesia’s IDX Composite inched lower, hovering around 6,665 in early Thursday trade and extending prior losses as Wall Street’s third straight drop overnight weighed on sentiment. Escalating U.S.–Iran tensions lifted Brent above USD100/bbl, stoking inflation fears. Simultaneously, U.S. Treasury yields surged despite a larger-than-usual USD 6 billion debt buyback. Locally, caution lingered over fiscal risks from high oil prices, though officials signaled the state budget stayed secure. Still, losses were capped by August consumer sentiment, which hit a three-month high, driven by stronger household finances and a brighter economic outlook. Financials, health, and non-cyclicals dragged the benchmark, though gains in energy, tech, and basic materials capped losses. Notable decliners included Japfa Comfeed (-2.1%), Indika Energy (-1.6%), Bank Rakyat Indonesia (-1.2%), and Unilever Indonesia (-0.6%). Traders now brace for July retail sales data after June marked a third monthly decline.

Indonesian shares slipped 34 points or 0.5% to 6,652 in Wednesday morning trade, reversing the prior rally as tech, non-cyclicals, and finance weighed on sentiment. Traders stayed cautious ahead of August consumer confidence data later today, after July’s reading hit a 15-month low. Meanwhile, July retail sales will be due Thursday, after June's reading marked three straight month of declines. Globally, U.S. futures were mixed after Wall Street’s overnight losses, pressured by oil near $100, inflation fears, and bond yields at multi-year highs. In main trading partner China, August CPI accelerated as expected, with PPI topping forecasts, adding to regional inflation concerns. Still, losses were limited by Finance Minister Purbaya Yudhi Sadewa’s assurance that Indonesia's GDP growth would remain solid in Q3 and Q4 despite recent natural disasters. Notable laggards included Charoen Pokphand (-3.0%), Bumi Resources (-1.9%), Indo Tambangraya Megah (-1.7%), and Astra International (-1.6%).

Indonesia’s IDX Composite rose 46 points, or 0.7%, to 6,663 in early Tuesday trade, snapping a two-day slide on broad gains across transport, cyclicals, and industrials. Sentiment improved after the reopening of the country’s main international airport, Soekarno-Hatta, shut for two days by volcanic ash from the eruption of Mount Anak Krakatau. Meanwhile, fresh data showed August forex reserves also climbed to a five-month high, aided by government loan withdrawals. However, upside was capped by caution ahead of key data in top trading partner China, with August trade figures due later today and CPI/PPI later this week, while domestic focus turned to consumer confidence and July retail trade. Globally, U.S. stock futures fell sharply amid Middle East uncertainty. Early standouts included Merdeka Battery Materials (7.8%), Raharja Energi Cepu (6.0%), Sarana Menara Nusantara (4.4%), and Sarana Mitra Luas (3.3%).