Indonesia Stocks Bounce Back
Indonesian shares advanced 34 points, or 0.5%, to 6,472 in Thursday morning trade, snapping a six-session slide as U.S. futures rallied after Wall Street’s overnight dip on the Fed’s first rate hike in three years. Sentiment improved after new Finance Minister Suahasil Nazara pledged to uphold a credible budget, with economists highlighting his fiscal expertise and long tenure at the ministry. Mixed August data from main trading partner China added hopes of fresh stimulus from Beijing. However, gains were capped by inflation worries from higher oil and looming El-Nino risks. Caution also grew ahead of Bank Indonesia’s policy meeting next week amid renewed rupiah pressure and signs of foreign outflows. Still, all major sectors advanced, led by energy, transport, and cyclicals. Early standouts included Merdeka Battery Materials (3.0%), Indika Energy (2.6%), Indosat Tbk. (1.7%), and Bank Mandiri (1.2%).
S. futures rallied after Wall Street’s overnight dip on the Fed’s first rate hike in three years. Sentiment improved after new Finance Minister Suahasil Nazara pledged to uphold a credible budget, with economists highlighting his fiscal expertise and long tenure at the ministry. Mixed August data from main trading partner China added hopes of fresh stimulus from Beijing.
However, gains were capped by inflation worries from higher oil and looming El-Nino risks. Caution also grew ahead of Bank Indonesia’s policy meeting next week amid renewed rupiah pressure and signs of foreign outflows. Still, all major sectors advanced, led by energy, transport, and cyclicals. 6%), Indosat Tbk.
2%).