Indonesian Shares Retreat Ahead of BI Rate Call
Indonesian equities fell 84 points, or 1.6%, to 5,197 on Wednesday morning, reversing a prior rally after regulatory measures to regain investor confidence, including adjustments to stocks with high shareholding concentration and greater disclosure of shareholder affiliations. Traders turned cautious ahead of Bank Indonesia's rate decision later today. While the central bank is expected to hold borrowing costs for a fourth straight month, room for easing is limited after a cumulative 100bps hike in May and June. Still, the decline was capped by record FDI in Q3 2026, supported by solid inflows into the base metal industry. In top trading partner China, key lending rates were left unchanged for a 17th month after stronger-than-expected Q3 GDP. Cyclicals, basic materials, and financials were mainly lower, partly offset by strength in infrastructure, non-cyclicals, and transport. Notable decliners included Solusi Energi Digital (-6.9%), Mitra Adiperkasa (-6.0%), and Medco Energi (-3.9%).
Indonesian equities fell 84 points, or 1.6%, to 5,197 on Wednesday morning, reversing a prior rally after regulatory measures to regain investor confidence, including adjustments to stocks with high shareholding concentration and greater disclosure of shareholder affiliations. Traders turned cautious ahead of Bank Indonesia's rate decision later today. While the central bank is expected to hold borrowing costs for a fourth straight month, room for easing is limited after a cumulative 100bps hike in May and June. Still, the decline was capped by record FDI in Q3 2026, supported by solid inflows into the base metal industry.
In top trading partner China, key lending rates were left unchanged for a 17th month after stronger-than-expected Q3 GDP. Cyclicals, basic materials, and financials were mainly lower, partly offset by strength in infrastructure, non-cyclicals, and transport. Notable decliners included Solusi Energi Digital (-6.9%), Mitra Adiperkasa (-6.0%), and Medco Energi (-3.9%).