Indonesian Stocks Under Pressure as Protests Fuel Political Risks
Indonesian equities slipped 94 points, or 1.8%, to 5,188 in early deals on Thursday, reversing modest gains in the prior session. Sentiment weakened as Nasdaq 100 and S&P 500 futures slipped after disappointing Alphabet earnings that fueled concerns over AI investment. Meanwhile, the Fed held rates steady, but its outlook for fewer policy-setting meetings next year prompted traders to reassess the rate path. Locally, student protests in several major cities heightened political risks, while oil above USD 100 per barrel added to fiscal pressures. Meanwhile, persistent foreign outflows peristed amid rupiah weakness. Traders also turned cautious ahead of next week’s key data release, including October inflation data after September figures accelerated to 3.28%. Losses were broad-based, led by infrastructure, consumer cyclicals, property, and financials. Notable decliners included Indosat (-6.7%), Bakrie & Brothers (-6.4%), Energi Mega Persada (-5.6%), and Sarana Menara Nusantara (-4.6%).
Indonesian equities slipped 94 points, or 1.8%, to 5,188 in early deals on Thursday, reversing modest gains in the prior session. Sentiment weakened as Nasdaq 100 and S&P 500 futures slipped after disappointing Alphabet earnings that fueled concerns over AI investment. Meanwhile, the Fed held rates steady, but its outlook for fewer policy-setting meetings next year prompted traders to reassess the rate path. Locally, student protests in several major cities heightened political risks, while oil above USD 100 per barrel added to fiscal pressures.
Meanwhile, persistent foreign outflows peristed amid rupiah weakness. Traders also turned cautious ahead of next week’s key data release, including October inflation data after September figures accelerated to 3.28%. Losses were broad-based, led by infrastructure, consumer cyclicals, property, and financials. Notable decliners included Indosat (-6.7%), Bakrie & Brothers (-6.4%), Energi Mega Persada (-5.6%), and Sarana Menara Nusantara (-4.6%).