Indonesian Equities Set to Log Modest Weekly Gain

Indonesian shares added 18 points, or 0.3%, to 6,047 in early Friday trade, rebounding from two sessions of weakness as U.S. futures firmed after President Trump pledged no military action against Iran before the Nov. 3 midterms, with public support for war fading. Locally, sentiment improved on hopes of fresh Q4 stimulus to safeguard purchasing power. However, gains were capped by softer September consumer confidence after August’s three-month high, weighed by rising food and non-subsidized fuel costs. Traders also awaited China’s post-Golden Week data, including CPI, PPI, and trade figures. Basic materials, infrastructure, and financials advanced, offset by losses in healthcare, property, and cyclicals. Standout movers included Sarana Menara Nusantara (4.1%), Hartadinata Abadi (2.9%), and Telkom Indonesia (2.2%). For the week, domestic markets inched up 0.2% so far, attempting to reverse losses in the prior four sessions, with focus now on August retail sales data due later today.

Indonesian stocks lost 27 points or 0.4% to 6,121 on Thursday morning deals, extending prior weakness amid losses in infrastructure, basic materials, and financials. Caution persisted ahead of September consumer confidence data later today following an improvement in August. In the U.S., equity futures were mixed after the S&P 500 fell from its record overnight as yields spiked to multidecade highs. Meanwhile, markets in main trading partner China resume activity today after recent breaks. Still, losses were tempered as the government plans to raise the tax-free income threshold to boost economic activity, the first adjustment in a decade. Currently, no income tax is payable on annual income of IDR 54 million a year. In fresh releases, September forex reserves were little changed, standing around USD 146.3 billion and remaining near a five-month top. Among notable decliners were Sanurhasta Mitra (-5.5%), Sinergi Inti Andalan (-5.3%), Energi Mega Persada (-3.3%), and RMK Energy (-2.9%).

Indonesia’s IDX Composite slipped 30 points, or 0.5%, to 6,165 in Wednesday morning deals, snapping a three-day advance as losses hit infrastructure, property, and transport. Sentiment weakened after U.S. stock futures turned lower, retreating from fresh Wall Street highs overnight, ahead of the Fed's latest meeting minutes and policy remarks from officials. Locally, caution grew with September forex data due today, followed by consumer sentiment and August retail sales later this week. Meanwhile, the World Bank warned Indonesia is trailing Malaysia and Vietnam in capturing the global AI investment boom, though it noted resilience in household consumption and government spending. Regionally, markets in main trading partner China will reopen Thursday after the Golden Week break. Major laggards included Solusi Sinergi Digital (-2.8%), United Tractor (-2.5%), Surya Citra Media (-1.7%), and Bumi Resources (-1.1%).