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IDX Composite falls 0.99% ahead of central bank policy meeting
The IDX Composite fell by 0.99 percent to 7,119.52 on Monday. Eight sectors declined as anticipation grows for Bank Indonesia's RDG meeting.
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An employee takes a photo of a screen displaying stock movements on July 4, 2023, at the Indonesian Stock Exchange (IDX) in Jakarta. The IDX Composite fell by 0.99 percent to 7,119.52 on Dec. 18, 2023, with eight sectors declining as anticipation grows for Bank Indonesia's policy meeting. (Antara/Hafidz Mubarak A)
T
he Indonesia Stock Exchange (IDX) Composite (IHSG) closed lower on Monday, shedding 71.46 points, or 0.99 percent, to close at 7,119.52.
The total stock transaction volume amounted to 28.8 billion shares, with a transaction value of Rp 12.36 trillion (US$803.4 million). Within the market, 356 stocks decreased, 189 stocks gained and 225 remained unchanged.
Eight sectoral indexes contributed to the decline, with the infrastructure sector taking the lead by falling 2.61 percent. It was followed by a 2.13 percent drop in the technology sector, a 1.55 percent decline in transportation and logistics and a 1.48 dip in primary consumer goods.
The financial, raw goods, energy and industrial sectors also saw varying degrees of decline, ranging from 0.02 percent to 1.07 percent.
Three sectors managed to buck the trend. The health sector saw a 0.48 percent increase, the property and real estate sector gained 0.224 percent and non-primary consumer goods rose by 0.12 percent.
Earlier predictions from the Lotus Andalan Sekuritas research team suggested that the IHSG could experience limited strength ahead of Bank Indonesia’s board of governors (RDG) meeting scheduled for Wednesday and Thursday, at which crucial decisions about domestic monetary policy would be made.
BI is not anticipated to make a preemptive move ahead of the United States Federal Reserve's rate cut, as interest rate spreads usually remain low.
"The focus this week is on the direction of BI's benchmark interest rate in the RDG on Dec. 20-21, 2023. The IHSG has the opportunity to strengthen even though it is limited to responding to the last two weeks of minimal sentiment that can move the market," Lotus Andalan researchers said on Monday morning, as cited by Antara news agency.
Meanwhile, Indonesia's trade surplus in November 2023 contracted to $2.41 billion, a decline from $5.10 billion in November 2022 and falling short of the estimated surplus of $3.05 billion.
The decrease was attributed to a drop in exports and a rise in imports against a backdrop of moderate commodity prices.
On a positive note, the IDX highlighted a 12 percent year-on-year increase in the transaction value of the debt securities and sukuk sharia-compliant bonds through the alternative market operator system.
The value reached Rp 133 trillion in November, compared to Rp 119 trillion in the same month in 2022.
