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IDX Composite records consecutive gains following a week of volatility
IDX Composite rose by 0.90 percent, buoyed by a drop in United States Treasury yields and varied big banks’ performances.
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A woman walks past a large screen displaying stock indices at the Indonesia Stock Exchange (IDX) in Jakarta on March 14, 2024. The IDX Composite rose by 0.9 percent to close at 7,099.31 on June 4, 2024. (AFP/Bay Ismoyo)
T
he Indonesia Stock Exchange (IDX) Composite index closed higher on Tuesday, continuing its upward trend after a period of volatility last week. The index rose 0.9 percent, 63.12 points, to settle at 7,099.31.
The gains signify a rebound from recent lows, reflecting renewed investor confidence in the Indonesian market.
Seven sectoral indices contributed to the Composite index’s ascent into positive territory. The non-primary consumer goods sector led the gains with a 1.23 percent increase, while the property and real estate sector advanced by 1.04 percent. The infrastructure sector also saw a significant rise of 1.01 percent.
Growth was also observed in the finance, primary consumer goods, basic materials, and transportation and logistics sectors, albeit at a more modest pace.
Despite the overall positive trend, some sectors faced setbacks. The energy, technology, industrial and healthcare sectors saw declines, with energy experiencing the most significant drop of 1.39 percent.
PT Amman Mineral Internasional (AMMN) led the pack as the top gainer, with its shares surging by 8.96 percent. It was closely followed by PT Semen Indonesia (SMGR) and PT Indocement Tunggal Prakarsa (INTP), which saw their stocks climb by 7.89 percent and 7.69 percent, respectively.
On the other hand, PT Merdeka Battery Materials (MBMA) experienced the steepest decline within the LQ45 index, with its shares falling by 8.97 percent. Two other top losers were PT GoTo Gojek Tokopedia (GOTO) and PT Vale Indonesia (INCO), whose shares decreased by 4.69 percent and 3.89 percent, respectively.
Today’s movement was influenced by several sentiments, including the continued decline in the yield of United States government bonds, which recorded a decrease until yesterday. This trend has revived the market’s appetite for riskier assets.
The yield on the US Treasury’s benchmark 10-year bonds fell sharply by 12 basis points to 4.39 percent. This decline may be linked to the recent downturn in US manufacturing activity data.
Domestically, financial expert at Ajaib Sekuritas Ratih Mustikoningsih noted that the index’s rebound was in sync with the resurgence of big bank stocks. Market participants reacted positively to the mixed financial performance of big banks for April 2024.
“State-owned big banks have recorded a positive annual performance, though they face monthly pressures due to a high-interest rate environment. On the other hand, the market has responded positively to the release of domestic annual inflation figures,” said financial expert at Ajaib Sekuritas Ratih Mustikoningsih on Tuesday, as quoted by Detik.com.
