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IDX Composite ends trading week with modest gain
The IDX Composite closed at 7,009.63 on Friday with signs of the market shifting to bonds until 2024.
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An employee takes a picture of stock movements
at the Indonesian Stock Exchange (IDX) in Jakarta on July 4, 2023. The IDX Composite closed at 7,009.63 on Friday with signs of the market shifting to bonds until 2024. (Antara/Hafidz Mubarak A)
T
he Indonesia Stock Exchange (IDX) Composite index closed the trading week with a modest 0.08 percent gain of 5.29 points to 7,009.63 on Friday.
The market saw positive movement in five sectors, with the technology sector leading with a 2.01 percent surge. Other contributors included the non-primary consumer goods sector with a 0.96 percent increase, the financial sector up by 0.87 percent, the raw goods sector climbing by 0.32 percent, and the transportation and logistics sector rising by 0.29 percent.
Conversely, six sectors saw declines, with notable drops in the infrastructure sector at 2.82 percent. Health and primary consumer goods declined by 0.89 percent and 0.58 percent, respectively. Property and real estate saw a 0.35 percent drop. Meanwhile, industry and energy only fell slightly, by 0.1 percent and 0.03 percent, respectively.
Total stock transaction volume reached 21.7 billion shares, amounting to Rp 8.7 trillion (US$556.8 million). Among the listed stocks, 276 weakened, 245 gained and 231 remained unchanged.
The LQ45 index also closed positively, rising by 0.15 percent to 924.866. Bank Jago (ARTO) led the increase with an 8.04 percent increase, followed by PT Mitra Adiperkasa (MAPI) with a 2.29 percent gain.
On the other hand, PT Charoen Pokphand Indonesia (CPIN) recorded the biggest loss for the day by declining 2.76 percent. PT Kalbe Farma (KLBF) followed suit with a 2.74 percent dip.
According to Janson Nasrial, the associate director chief of research at PT Fokus Finansial, the IDX has witnessed a substantial outflow of $921 million.
However, a considerable inflow of $4.1 billion into government bonds (SUN) indicates a shift by foreign investors from stocks to SUN, which is expected to continue until 2024.
"This [shift] will see the index hit 7,050 by the end of 2023 and in 2024 to 7,300. Plus, investors will still wait and see during the election, in January-February 2024, which will also make the market quiet and transaction value below Rp 1 trillion [$64 million]," he said on Friday, as cited by Investor.id.
Despite the caution, Janson highlighted positive signals from the Bank Indonesia governor’s meeting results, suggesting a benchmark interest rate reduction in 2024, which aligns with global forecasts. This expectation supports the index ending the year above 7,050, with potential “window dressing.”
However, Janson noted that the pace of share price growth by the end of 2023 might not match previous years.
