Indonesian Equities Slips to 2-Month Low as Losses Deepens
Indonesian shares tumbled 94 points, or 1.3%, to 6,064 in Tuesday morning trade, extending declines for a fourth session to their lowest since late July. Sentiment weakened as U.S. stock futures fell after Wall Street’s overnight drop, with Treasury yields hovering at multiyear highs amid renewed Middle East tensions that stoked inflation fears and prospects of further rate hikes. Locally, higher oil prices weighed on fiscal outlook and risk appetite, compounded by new trading rules allowing shares on regular and cash markets to fall to as low as IDR 1 under broader exchange reforms. Caution also lingered ahead of August trade and September inflation data due later this week. In key trading partner China, September PMI readings from both official sources and private surveys also loom. All sectors retreated, led by tech, cyclicals, transport, and energy. Major laggards included Gojek Tokopedia (-14.0%), Petrindo Jaya Kreasi (-7.1%), Adaro Andalan (-6.5%), and Darma Henwa (-5.1%).
3%, to 6,064 in Tuesday morning trade, extending declines for a fourth session to their lowest since late July. S. stock futures fell after Wall Street’s overnight drop, with Treasury yields hovering at multiyear highs amid renewed Middle East tensions that stoked inflation fears and prospects of further rate hikes. Locally, higher oil prices weighed on fiscal outlook and risk appetite, compounded by new trading rules allowing shares on regular and cash markets to fall to as low as IDR 1 under broader exchange reforms.
Caution also lingered ahead of August trade and September inflation data due later this week. In key trading partner China, September PMI readings from both official sources and private surveys also loom. All sectors retreated, led by tech, cyclicals, transport, and energy. 1%).