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IDX Composite dips 0.53% ahead of central bank’s policy meeting
IDX Composite drops by 0.53 percent to 7,296.70, as investors await Bank Indonesia's interest rate decision this week.
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Attendees look at stock trading movements during the trade opening ceremony at the Indonesia Stock Exchange (IDX) in Jakarta on Jan. 2, 2024. The IDX Composite dropped by 0.53 percent to 7,296.70 on Feb. 19, 2024, as investors await Bank Indonesia's interest rate decision this week. (Antara/Asprilla Dwi Adha)
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he Indonesia Stock Exchange (IDX) Composite experienced a downturn on Monday, dropping by 0.53 percent or 38.84 points to 7,296.70 after last week's rally.
The total trading volume for the day was 16.97 billion shares, amounting to Rp 10 trillion (US$640 million) in transactions. Of the listed stocks, 336 declined, 198 gained and 242 remained unchanged.
Nine sectoral indices contributed to the decline, with only two sectors managing to gain amid the overall downturn. The technology sector led with a 0.61 percent increase, followed by the energy sector, which increased by 0.43 percent.
Meanwhile, the raw goods sector experienced the most significant decline at 1.49 percent, followed by the non-primary consumer goods sector at 1.39 percent. The industrial and infrastructure sectors also saw declines of 0.89 percent and 0.69 percent, respectively.
The LQ45 index also slid 0.83 percent to 998.288. Among the top losers were PT Bank Jago (ARTO) with a 7.43 percent decline, and PT ESSA Industries Indonesia (ESSA) with a 5.5 percent decrease.
The top gainers were PT Vale Indonesia (INCO), which rose by 4.34 percent, and PT Bank Syariah Indonesia (BRIS), which added 2.15 percent.
Market analysts earlier predicted mixed movements in the IDX Composite as investors awaited outcomes of the Bank Indonesia’s board of governors meeting scheduled on Wednesday.
BI was expected to maintain its benchmark interest rate at 6 percent.
"The IDX Composite is expected to experience volatility this week in response to domestic and foreign sentiment," said the Lotus Andalan Sekuritas research team on Monday, as quoted by Antara news agency.
Market optimism also stemmed from the preliminary results of quick counts and real counts from the General Elections Commission (KPU), which indicated a potential one-round victory for the Prabowo Subianto-Gibran Rakabuming Raka pair.
Internationally, market attention focused on the United States Federal Reserve, which is set to release the minutes of the Federal Open Market Committee (FOMC) meeting on Thursday. Investors are keen to get insights into the Fed's future policy directions, particularly concerning interest rate adjustments.
Meanwhile, in Asia, the People's Bank of China (PBoC) is convening to discuss its benchmark interest rate on Tuesday. Expectations leaned toward the central bank maintaining its current benchmark rate. The PBoC is also anticipated to inject 105 billion Chinese yuan ($14.7 billion) through a seven-day reverse repo (7DRRR). This stimulus will likely stimulate the Chinese economy, potentially benefiting Indonesia's market outlook.
