Indonesian Equities Trade Lower After Recent Rally

Indonesian stocks fell 0.3% to 6,077 in Monday morning deals, easing after a prior rally as infrastructure, financials, and transport weighed. Sentiment turned cautious after U.S. President Donald Trump said he may join Saudi Arabia in retaliating against Tehran-backed Houthis following a deadly attack on Riyadh’s main airport over the weekend. Traders also vigilantly awaited CPI/PPI and trade data from main trading partner China due later this week as activity resumed after a major break. Locally, inflation risks stayed in focus after September figures hit a three-month high of 3.28%, with food prices expected to remain a key driver through year-end. Still, losses were limited by August retail sales, which posted their fastest growth in five months amid continued government support measures to cushion households against cost pressures. Notable laggards included Gojek Tokopedia (-6.7%), XL Smart Telecom (-3.4%), Mitra Adiperkasa (-2.3%), and Indika Energy (-2.2%).

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%).