BI Support Lifts Indonesian Stocks for 3rd Session

Indonesian stocks rose 40 points, or 0.7%, to 5,367 on Thursday morning deals, up for the third straight session as most sectors advanced. Sentiment was buoyed by Bank Indonesia’s move to hold its key rate at 5.75% for a fourth straight month while raising its deposit facility rate by 25bps to support the rupiah. The central bank also gradually cut RRR from Nov. 1, aiming to free up around IDR 190 trillion into the banking system. However, gains were capped by remarks from President Prabowo, who accused MSCI of trying to frighten Indonesia, after proposing to strip the country of emerging-market status and reclassifying it as a “standalone” market. Meanwhile, U.S. equity futures weakened amid persistent concerns over returns from heavy tech spending. Non-cyclicals, energy, healthcare, and financials drove the strength, with Merdeka Battery Materials (4.0%), Aneka Tambang (3.3%), and Telkom Indonesia (1.9%) among early standouts. The four big banks rallied between 1.8% and 2.5%.