Indonesian Shares Rebound as Wall Street Gains Lift Sentiment

Indonesian equities slipped 94 points, or 1.8%, to 5,188 in early deals on Thursday, reversing modest gains in the prior session. Sentiment weakened as Nasdaq 100 and S&P 500 futures fell after disappointing Alphabet earnings that sparked concerns over AI investment. Meanwhile, the U.S. Fed held rates steady, but its outlook for fewer policy-setting meetings next year prompted traders to reassess the rate path. Locally, student protests in several major cities heightened political risks, while oil above USD 100 per barrel added to fiscal strain. Further, foreign outflows deepened amid rupiah weakness. Traders also turned cautious ahead of next week’s key data releases, including October inflation, after September figures accelerated to 3.28%. Losses were broad, led by infrastructure, consumer cyclicals, property, and financials. Notable decliners included Indosat (-6.7%), Bakrie & Brothers (-6.4%), Energi Mega Persada (-5.6%), and Sarana Menara Nusantara (-4.6%).

Indonesian shares fell 46 points, or 0.9%, to 5,223 in Wednesday morning trade, down for a third session amid broad selling across non-cyclicals, energy, and transport. Sentiment weakened as U.S. stock futures were mainly lower ahead of the Fed’s rate decision later today and earnings from major tech companies. Locally, persistent rupiah weakness, foreign fund outflow concerns, and inflation risks continued to weigh on risk appetite. Pressure on the state budget also remained a concern as oil prices hovered above USD 100 per barrel. However, losses were partly capped by FTSE Russell’s decision to retain Indonesia’s emerging-market status. Meanwhile, the government said that fuel supplies remained adequate for both subsidised and non-subsidised products. In China, a key trading partner, industrial profits stayed resilient in January-September despite weakness in some sectors. Among the biggest laggards were Barito Pacific (-5.3%), Indosat (-5.0%), and Indofood Sukses Makmur (-3.8%).

Indonesia’s IDX Composite tumbled 165 points, or 3.1%, to 5,204 on Tuesday afternoon, erasing early gains and extending the prior decline. Persistent rupiah weakness, concerns over foreign fund outflows, and lingering uncertainty surrounding Indonesia’s MSCI status dampened sentiment. Meanwhile, fiscal worries mounted as higher oil prices coincided with government proposals to offer free education from primary school through university, adding to concerns over rising budget spending. Investors also adopted a cautious stance ahead of the Fed’s policy meeting and major U.S. earnings reports, while vigilantly monitoring developments in the Middle East amid renewed diplomatic efforts. Selling pressure was broad-based across sectors, with energy, infrastructure, and consumer cyclicals leading the weakness. Indonesia’s four largest banks fell between 2.4% and nearly 5%. Other biggest laggards included Darma Henwa (-6.9%), Indika Energy (-5.9%), and Telkom Indonesia (-5.3%).