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IDX Composite drops 1.20% on Tuesday
The IDX Composite closed 1.20 percent lower on Tuesday, ahead of the 2024 general election and amid United States inflation data.
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People look at a screen displaying stock prices during a ceremony to open the trading day on the Indonesia Stock Exchange (IDX) in Jakarta on Jan. 2, 2024. (Antara/Asprilla Dwi Adha)
T
he Indonesia Stock Exchange (IDX) Composite fell 1.20 percent on Tuesday, ending the trading day at 7,209.74. The index had opened up 0.05 percent at 7,301.59.
Nine of the Composite’s 11 sectoral indices declined, with the basic materials sector posting the largest loss, of 2.01 percent.
By the closing bell, 308 stocks had fallen, 214 had risen and the remaining 245 remained flat. Some 14.8 billion shares were traded during the day, worth about Rp 9.5 trillion (US$607.48 million).
The LQ45, an index that tracks the IDX’s top 45 stocks by market capitalization, lost 0.7 percent. PT Mitra Pack (PTMP) was the top gainer within the LQ45 index, jumping by 6.14 percent. On the other hand, PT Unilever Indonesia (UNVR) recorded the biggest loss on the index on Tuesday, falling by 4.11 percent.
The IDX Composite was influenced by domestic and global factors. On the domestic front, investors were cautious ahead of the 2024 general election on Wednesday. Incoming consumer data also influenced the market.
"Meanwhile, the domestic consumer index, that is the Consumer Confidence Index (IKK), and retail sales are expected to remain solid and serve as a positive catalyst for the IDX Composite," said Ratih Mustikoningsih, a financial expert at Ajaib Sekuritas, as quoted by bisnis.com.
Additionally, the Indonesian Motorcycle Industry Association (AISI) reported that 592,700 motorcycles were sold in January, up 3.7 percent year-on-year (yoy).
The figure was a significant improvement from December 2023, when sales contracted by 11.6 percent on an annual basis. On a month-to-month basis, motorcycle sales in January grew 38.7 percent.
On the global front, market participants paid attention to annual United States inflation data on Tuesday. The data was also important for the Federal Reserve’s interest rate policy.
Investors estimate that US inflation will ease slightly to 2.9 percent in January.
Since its monetary tightening campaign started in March 2022, the Fed has repeatedly insisted on achieving its inflation target of 2 percent.
