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Indonesia’s IDX Composite fell 82 points, or 1.4%, to 5,918 in Friday’s morning session, wiping out the previous day’s rally as broad-based selling hit all major sectors. The market tracked regional weakness after a mixed close on Wall Street overnight, with Apple’s price increases—aimed at offsetting surging chip costs—adding to the pressure.
Sentiment was further dampened by caution ahead of key upcoming data: June PMI figures from China, Indonesia’s main trading partner, as well as local releases on June CPI and May trade. However, losses were partly contained by reports that the government is considering an additional budget cut of more than USD 2 billion for President-elect Prabowo’s flagship free meal program, which would help ease the fiscal burden.
Basic materials, cyclicals, and industrials led the declines, with notable drops in Jasa Marga (-7.6%), Darma Henwa (-6.7%), Sarana Mitra Luas (-6.2%), and Buka Lapak (-4.8%). For the week, the market is on track for its first decline in three weeks, down about 3.8% so far, as frontier-market downgrade risks continue to hang over sentiment despite MSCI’s decision to postpone its review to November.
