Indonesian Stocks Rise After BI Moves
Indonesian shares rose 27 points or 0.4% to 5,302 on Wednesday afternoon, reversing early losses after Bank Indonesia kept its key interest rate unchanged at 5.75% for a fourth straight month but raised the deposit facility rate by 25bps to 5% and enhanced incentives for DNDF hedging to help attract foreign capital. To spur liquidity, the board cut the reserve requirement ratio by 1 ppt to 8% from Nov. 1 and further to 7% from Dec. 1, a measure expected to add around IDR 190 trillion into the financial system. Gov. Destry Damayanti said that cumulative rate hikes of 100bps earlier this year had helped anchor inflation expectations despite persistent food prices linked to the impact of El Niño. Meanwhile, U.S. stock futures strengthened as concerns over AI trade eased. Healthcare, property, non-cyclicals, and infrastructure led the gains. Notable performers included AKR Corp. (6.2%), Indofood Sukses Makmur (4.8%), and Indosat Tbk (4.1%). The four big banks were up between 0.3% and 1%.
Indonesian shares rose 27 points or 0.4% to 5,302 on Wednesday afternoon, reversing early losses after Bank Indonesia kept its key interest rate unchanged at 5.75% for a fourth straight month but raised the deposit facility rate by 25bps to 5% and enhanced incentives for DNDF hedging to help attract foreign capital. To spur liquidity, the board cut the reserve requirement ratio by 1 ppt to 8% from Nov. 1 and further to 7% from Dec. 1, a measure expected to add around IDR 190 trillion into the financial system.
Gov. Destry Damayanti said that cumulative rate hikes of 100bps earlier this year had helped anchor inflation expectations despite persistent food prices linked to the impact of El Niño. Meanwhile, U.S. stock futures strengthened as concerns over AI trade eased.
Healthcare, property, non-cyclicals, and infrastructure led the gains. Notable performers included AKR Corp. (6.2%), Indofood Sukses Makmur (4.8%), and Indosat Tbk (4.1%). The four big banks were up between 0.3% and 1%.