Stocks in Indonesia Hit 6-year Low

JCI decreased to 4907.00 Index Points, the lowest since October 2020. Over the past 4 weeks, Jakarta Stock Exchange Composite Index lost 19.77%, and in the last 12 months, it decreased 40.43%.

Indonesia’s IDX Composite fell 70 points, or 1.4%, to 5,028 in early Tuesday trading, reversing gains in the prior day amid broad-based losses across major sectors, led by energy, infrastructure, basic materials, and property. Sentiment weakened as October food inflation hit a five-month high, due to lingering El Niño-related supply disruptions, despite a slight easing in headline inflation that kept it within the central bank’s target range. Meanwhile, the trade surplus faces continued pressure as imports outpace exports, despite a stronger-than-expected reading in September. In the U.S., stock futures were mixed ahead of the midterm elections and key data releases. Still, losses were limited by a major bourse reform excluding 81 stocks with high shareholding concentration from benchmark index calculations, in response to MSCI's warnings over potential market reclassification. Notable laggards included Medco Energi (-5.1%), Telkom Indonesia (-4.3%), and Bank Tabungan Negara (-3.4%).

Indonesian shares climbed 44 points, or 0.9%, to 5,113 on Monday afternoon, reversing early losses as sentiment improved amid stronger U.S. stock futures and falling oil prices following reports of renewed U.S.-Iran diplomatic efforts to ease Middle East tensions. Traders also eagerly anticipate further corporate earnings, U.S. jobs data, and the upcoming midterm elections. Locally, risk appetite was lifted by a stronger-than-expected September trade surplus, as exports grew more than forecast while imports unexpectedly slowed. Meanwhile, the Indonesian bourse officially implemented a major reform, excluding 81 stocks classified as having High Shareholding Concentration from benchmark index calculations. The measure was fast-tracked in response to MSCI warnings over potential market reclassification. Most sectors advanced, led by basic materials, energy, and infrastructure. Top movers included Darma Henwa (10.3%), Bumi Resources (9.2%), Indika Energy (8.4%), and Merdeka Battery (6.7%).