Indonesian Stocks Rise for 4th Session, Set for Solid Weekly Gain

Indonesia’s IDX Composite rose 40 points, or 0.7%, to 5,422 in early trading on Friday, up for the fourth session, amid gains in energy, cyclical, industrial, and infrastructure stocks. Sentiment was supported by exchange reforms that will exclude stocks classified as having High Shareholding Concentration from composite index calculations starting Nov. 2. The move follows MSCI warnings that Indonesian equities risk being downgraded from emerging to standalone market status. Meanwhile, several listed companies, including major banks, have launched share buyback programs to restore investor confidence and support sliding valuations. However, gains were capped by fiscal concerns as oil prices hovered around USD 100 per barrel, while accelerating food prices added to inflationary pressures. Bukit Asam rose 3.5%, along with Astra Intl. (2.9%), and XLSmart Telecom (2.5%). For the week, the index was on track to rise around 4%, partially recovering from a nearly 15% plunge in the prior week.