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IDX Composite falls 1.61% as Fed delays interest rate decision
The IDX Composite dropped by 116.77 points, or 1.61 percent, on Thursday to close at 7,117.42 as the Fed delayed an expected interest rate decision.
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A woman walks past a large screen displaying stock prices at the Indonesia Stock Exchange (IDX) in Jakarta on March 14, 2024. The IDX Composite index dropped by 116.77 points, or 1.61 percent, on May 2, 2024, to close at 7,117.42 . (AFP/Bay Ismoyo)
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he Indonesian Stock Exchange (IDX) Composite index fell by 116.77 points, or 1.61 percent, on Thursday to end the trading day at 7,117.42.
The exchange saw a total trading volume of 19.28 billion shares valued at Rp 16.78 trillion (US$1.03 billion). Of the stocks, 405 declined, 187 gained and 178 remained unchanged.
Nine sectoral indices pulled the Composite index down, with only two sectors showing strength amid the market decline. The healthcare sector rose 0.12 percent, while the industrial sector increased 0.11 percent.
The financial sector dropped significantly, by 2.78 percent, and transportation and logistics fell 2.02 percent. The primary consumer goods, raw materials, property, real estate, energy and technology sectors also saw declines ranging from 0.68 percent to 2.78 percent.
The LQ45 index, which monitors the top 45 stocks by market capitalization, fell by 3.02 percent to 898.75.
PT Kalbe Farma (KLBF) was the best-performing stock, rising by 2.41 percent, followed by PT Semen Indonesia (SMGR) with a 1.50 percent increase and PT Amman Mineral Internasional (AMMN) with a 0.77 percent increase.
The top losers on the LQ45 were PT Mitra Adiperkasa (MAPI) with an 8.57 percent decrease, PT Bank Mandiri (BMRI) with a decline of 8.33 percent and PT Bank Negara Indonesia (BBNI), which fell 8 percent.
The Composite index has recorded a 0.80 percent drop over the past week and has decreased by 2.14 percent year to date.
In the afternoon trading session, the Composite index correction deepened after the United States Federal Reserve once again held its benchmark interest rate and indicated it would not cut it soon.
The Fed kept its interest rate steady at 5.25 to 5.50 percent for the sixth consecutive time. However, it observed limited progress in controlling inflation, prompting it to await further data before considering a rate cut.
The Fed increased interest rates by 525 basis points (bps) from March 2022 to July 2023.
The rates were at the level of 5.25 percent to 5.50 percent from September to May 2023.
As a result, concerns about risky assets increased, causing investors to shift toward more conservative assets as rate cuts appeared more distant.
