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IDX Composite dips 0.09% after new inflation report
The IDX Composite closed on Thursday slightly lower at 7,201.7 after new BPS data showed that inflation had slowed in January.
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Attendees look at stock movements on Jan. 2 during the opening ceremony of the Indonesia Stock Exchange (IDX) for 2024 at the bourse in Jakarta. The IDX Composite closed slightly lower at 7,201.7 on Feb. 1, 2024, following data that showed inflation had slowed in January. (Antara/Asprilla Dwi Adha)
T
he Indonesia Stock Exchange (IDX) Composite posted a slight dip of 0.09 percent or 6.24 points to end the first day of trading February at 7,201.7, after it opened at 7,223.12 but failed to sustain the momentum through the day.
Thursday’s movement on the IDX Composite was influenced by various factors. On the domestic side, the market paid attention to new inflation data released earlier in the day by Statistics Indonesia, which showed that January inflation had increased 2.57 percent year-on-year and 0.04 percent month-to-month.
Bank Permata chief economist Josua Pardede said the slowdown in inflation was mainly due to demand returning to normal levels after the year-end holidays as well as a decrease in food prices.
“The decline in food inflation was driven by deflation in the prices of red chili and bird’s eye chili, along with the [seasonal] harvest in several regions. Meanwhile, the prices of certain foods, such as broiler chicken, shallots and rice, still experienced inflation,” Josua said, as quoted by Bisnis.com.
In terms of external factors, the market was affected by the United States Federal Reserve’s decision to maintain its benchmark interest rate. The Fed also signaled it would not cut its rate in March, which weighed on the US stock market, especially technology stocks.
The IDX Composite dragged down eight of the 11 IDX sectors, with the transportation and logistics sector dropping 1.56 percent. The financial sector fell 1.30 percent and the energy sector 1.01 percent.
In gains, the health sector soared 1.48 percent, while infrastructure and non-primary consumer goods edged up 0.09 percent and 0.01 percent, respectively.
The LQ45 index also moved up 0.31 percent to close at 977.27.
PT Mitra Pack (PTMP) led the gainers with a 16.98 percent surge while PT Merdeka Copper Gold (MDKA) was the top loser with a 6.67 percent drop.
