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IDX Composite starts week with 0.64% decline
The Indonesia Stock Exchange (IDX) Composite index's 0.64 percent drop on Monday reflects cautious trading as IPOT notes unusual foreign fund outflows and market risks this week.
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A woman walks past a screen displaying stock prices on the Indonesia Stock Exchange (IDX) in Jakarta on March 14, 2024. The IDX Composite index fell 0.64 percent to close at 7,176.42 on May 27, 2024. (AFP/Bay Ismoyo)
T
he Indonesia Stock Exchange (IDX) Composite index ended the trading day in the red on Monday, falling 0.64 percent to close at 7,176.42.
A broad sectoral decline led to the downturn. Only the technology and primary consumer goods sectors managed to post gains, of 2.36 percent and 0.07 percent, respectively.
The property sector led the decline with a loss of 1.68 percent, followed by basic materials at 1.52 percent, infrastructure at 1.29 percent and non-primary consumer goods at 1.09 percent.
The LQ45 index also closed 6.049 points, or 0.68 percent, lower at 889.80.
Market activity saw 207 stocks rise, 367 fall and 205 remain unchanged. Over 20.9 billion shares were traded on the IDX on Monday, making for a total transaction value of Rp 14.68 trillion (US$913.78 million).
Leading the downturn, PT Barito Pacific (BRPT) saw its shares fall 8.86 percent. PT Sarana Menara Nusantara (TOWR) and PT ESSA Industries Indonesia (ESSA) also experienced significant drops, decreasing by 7.19 percent and 4.91 percent, respectively.
Conversely, PT Amman Mineral International (AMMN) stood out with a 19.9 percent increase in share price. PT Bukalapak.com (BUKA) followed with a 6.69 percent increase, and PT Unilever Indonesia (UNVR) rose by 6.54 percent.
Amid these market movements, Indo Premier Sekuritas (IPOT) equity analyst Dimas Krisna Ramadhani highlighted the need for investors to monitor the flow of foreign funds in and out of the market this week.
He noted that Rp 254 billion (US$15.81 million) in foreign funds had left the regular market over the past week, making for a total outflow of Rp 13.2 trillion ($821.6 million) over the past month.
"The current level of consistent weekly outflows by foreign investors is unusual. Previous patterns suggest that such significant foreign outflows are often followed by a deep market correction," Dimas said on Monday, as quoted by Antara news agency.
Dimas pointed out that the IDX Composite index’s year-to-date performance had been lackluster compared to the S&P 500 index.
The IDX Composite index has fallen by 0.69 percent, while the S&P 500 has risen by 11.85 percent, prompting a shift in foreign funds from emerging markets to more stable developed markets.
"This trend is leading to a shift of funds from emerging market indices to those of developed countries, which are perceived as less risky,” Dimas said.
“The anomaly here is that lower risk is typically associated with lower rewards, but the current situation suggests otherwise.”
