Indonesian Equities Retreat Sharply as Week Opens
Indonesian shares slipped 69 points or 1.1% to 5,374 on Monday morning deals, reversing gains in the prior four sessions, as caution prevailed ahead of a busy week of global central bank decisions, including the Fed. Wall Street Friday fell for the second straight week, reflecting persistent concerns over AI investment. Locally, fiscal worries reemerged amid higher oil prices, given Indonesia’s status as a net oil importer. Still, losses were limited by a growing IPO pipeline, as nine companies are reportedly seeking listings, with healthcare firms accounting for the largest share. Meanwhile, the Financial Services Authority extended until June 2027 a policy allowing listed companies to conduct share buybacks without prior shareholder approval, aiming to support market stability amid uncertainty over MSCI’s review of Indonesia’s market classification. Most sectors fell, with Indosat (- 3.6%), Mitra Adiperkasa (-2.2%), and Aneka Tambang (-1.7%) among major laggards.
Indonesian shares slipped 69 points or 1.1% to 5,374 on Monday morning deals, reversing gains in the prior four sessions, as caution prevailed ahead of a busy week of global central bank decisions, including the Fed. Wall Street Friday fell for the second straight week, reflecting persistent concerns over AI investment. Locally, fiscal worries reemerged amid higher oil prices, given Indonesia’s status as a net oil importer. Still, losses were limited by a growing IPO pipeline, as nine companies are reportedly seeking listings, with healthcare firms accounting for the largest share.
Meanwhile, the Financial Services Authority extended until June 2027 a policy allowing listed companies to conduct share buybacks without prior shareholder approval, aiming to support market stability amid uncertainty over MSCI’s review of Indonesia’s market classification. Most sectors fell, with Indosat (- 3.6%), Mitra Adiperkasa (-2.2%), and Aneka Tambang (-1.7%) among major laggards.