Indonesian Stocks Bounce Back

Indonesian shares advanced 34 points, or 0.5%, to 6,472 in Thursday morning trade, snapping a six-session slide as U.S. futures rallied after Wall Street’s overnight dip following the Federal Reserve’s first rate hike in three years. Sentiment improved after new Finance Minister Suahasil Nazara pledged to uphold a credible budget, with economists highlighting his fiscal expertise and long tenure at the ministry. Mixed August economic data from main trading partner China added hopes of fresh stimulus from Beijing. However, gains were constrained by growing inflation worries from higher oil and looming El Niño risks. Caution also grew ahead of Bank Indonesia’s policy meeting next week amid renewed rupiah pressure and signs of foreign outflows. Still, all major sectors advanced, led by energy, transport, and cyclicals. Early standouts included Merdeka Battery Materials (3.0%), Indika Energy (2.6%), Indosat Tbk. (1.7%), and Bank Mandiri (1.2%).

Indonesian stocks rose 51 points or 0.8% to 6,511 in Wednesday morning trade, snapping a five-session slide as U.S. futures firmed ahead of the Federal Reserve’s policy decision later today. Locally, focus turned to the new finance minister’s early fiscal steps and credibility measures, with Suahasil Nazara pledging budget discipline, including the 3% deficit cap. The upturn was tempered, however, by caution with Bank Indonesia’s meeting next week amid renewed rupiah weakness and foreign outflows. Meanwhile, MSCI’s November review looms, with downgrade risks to frontier market status if reforms falter. August economic data in main trading partner China showed mixed signals, with retail sales slowing and unemployment ticking higher, while industrial output improved. Gains were broad-based, led by energy, industrials, and basic materials. Notable movers included Impack Pratama Industri (4.6%), Summarecon Agung (4.2%), Vale Indonesia (2.8%), and Timah Tbk (2.5%).

Indonesian equities fell 35 points or 0.5% to 6,500 in Tuesday morning trade, marking a fifth session of decline after Wall Street closed lower overnight as traders weighed rising oil prices, elevated bond yields, and the looming U.S. Fed decision. In China, August data showed uneven momentum, with retail sales slowing and unemployment edging higher, though industrial output picked up. Locally, newly appointed Finance Minister Suahasil Nazara pledged to bolster the ministry’s credibility and leverage the state budget to drive growth, hours after being sworn in to replace Purbaya Yudhi, whose tenure was marked by assertive fiscal moves and public controversies. Financials, healthcare, and transport led sectoral weakness, while cyclicals provided some support. State-owned banks dragged, with Bank Negara Indonesia (-2.3%), Bank Rakyat Indonesia (-2.1%), and Bank Mandiri (-2.0%) lower. Other notable decliners included ESSA Industries (-2.3%), Bukit Asam (-1.0%), and Astra Intl. (-0.8%).