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IDX Composite down 1.49% on BREN and global yields
The IDX Composite retreated 1.49 percent, ending at 7,034.14 on Thursday, as BREN’s sharp decline and a spike in global yields contributed to market unease.
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A woman walks past a large screen displaying stock indices on March 14, 2024, at the Indonesia Stock Exchange (IDX) in Jakarta. The IDX Composite index retreated 1.49 percent, ending at 7,034.14 on May 30, 2024. (AFP/Bay Ismoyo)
T
he Indonesia Stock Exchange (IDX) Composite index faced another day of decline, closing Thursday's session down by 1.49 percent or 106.09 points to settle at 7,034.14. This followed a downward trend over the past five trading days, with a cumulative decline of 2.11 percent.
Only the healthcare sector managed a gain — of 0.25 percent — among the 11 sectoral indices. The remaining sectors experienced losses, with the basic materials sector leading the decline at 2.10 percent.
Within the LQ45 index, PT Unilever Indonesia Tbk emerged as the top gainer, with its shares appreciating by 3.32 percent. PT Indo Tambangraya Megah (ITMG) and PT Adaro Energy Indonesia (ADRO) followed suit with gains of 2.36 percent and 2.24 percent, respectively.
Meanwhile, PT Amman Mineral Internasional (AMMN) led the top losers, with shares falling by 5.68 percent. PT GoTo Gojek Tokopedia (GOTO) and PT Merdeka Battery Materials (MBMA) followed suit with significant declines of 5.63 percent and 4.44 percent, respectively.
The total trading volume reached 19 billion shares, with a transaction value of Rp 13.8 trillion (US$849.21 million). A total of 349 stocks declined, while 185 stocks advanced and 242 remained unchanged.
The recent fall in the shares of PT Barito Renewables Energy Tbk (BREN) is believed to have contributed to the index's downturn. BREN's share price dropped sharply from Rp 11,250 on May 22 to Rp 9,125 and was subsequently placed on the IDX's special monitoring board.
Commenting on the volatility, IDX director of trading and member regulation Irvan Susandy maintained that the index would experience some adjustment.
"Minor turbulence is a natural response to market developments. I am confident the market will adjust to changes, whether macro, micro, regional or global," Irvan said on Wednesday, as reported by Bisnis.com.
Globally, Pilarmas Investindo Sekuritas attributed the IDX Composite’s slump to the pressure from a surge in global bond yields.
According to Pilarmas, this is an effect of market sentiment caused by the United States Federal Reserve maintaining higher interest rates for an extended period.
"This leads to a perception of uncertainty within the market regarding the timing and magnitude of the Fed's rate cuts," Pilarmas noted in its research on Thursday, as quoted by Investor.id.
